IT Cost Optimisation Benchmarking Asset, Wealth Management & Insurance

Client Challenge

A Global Investment Manager, and amongst the largest in the world with c£400 B of Assets under Management (AuM) had grown through multiple mergers and acquisitions. ​The client had been running a Cost Optimisation initiative for 3 years to reduce costs which failed to achieve its desired goals; they were seeking external expertise to help uncover deep-rooted issues. ​

The cost base comprised of resources such as staff, third-party vendor contracts and infrastructure, housed across multiple legal entities. This was further complicated by a complex, hybrid technology landscape with a number of shared capability functions some of which were outsourced to strategic vendors.

What We Did

The project team worked with the client to conduct:​

Security Toolset Review​

  • Security headcount versus the market benchmark indicators​
  • Evaluate the current security toolsets and identify more cost-effective alternatives that meet the client’s Risk Appetite​

Functional Operational Model Analysis​

  • Reviewed the resources and compared them with the TORI Functional Operations model based on benchmark headcount inputs. This highlighted functional overlaps and opportunities to rationalise​
  • Benchmark and critically examine cost for Change (Project costs)​
  • Hosted specific Deep dive Workshops, post receipt of Benchmark data​
  • Delivered final report which included detailed feedback and strategic recommendations which were presented to the Board of Directors​

Outcomes & Result

  • The opportunities identified from the Benchmarking exercise were discussed and agreed upon with the relevant stakeholders ​
  • TORI drove down the cost to change per increment £ of revenue generated. The objective to drive the cost base to be best in class over the medium term (3 years) was achieved through a set of recommendations​
  • Recommendations were segmented into quick wins and medium-term plan​
  • The client was happy with the observations TORI had made and subsequently received Board approval to implement

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