Software Estate Review Cost Optimisation​ Market Leading Global Insurance Company​

Client Challenge

Following recent divestment activities, the Client was keen to engage a third party to review its software estate (~ £102Macross its growth markets in the UK, Ireland, and Canada with particular focus on the UK providing actionable recommendations in four main areas:​

  1. Suitability of existing enterprise agreements.
  1. Tiering of either enterprise or consumption-based tariffs. ​
  1. Software utilisation review – Opportunities for rationalisation across Software, Tooling, process effectiveness and governance used for the Software Asset Management (SAM) team and opportunities to drive best practice.
  2. A clear set of actions, dependencies, and timescales to drive value and cost savings from current software expenditure.

What We Did

TORI completed an 8-week engagement and collaborated closely with the Client’s internal IT, procurement / product owners, examining and constructively challenging the cost base, procurement practices and licence utilisation taking accord of over overarching business objectives and desired cost savings targets. TORI used an expert advisory panel alongside the execution team adopting a value-based approach. Internally developed benchmarks were used to assess significant spend across contracts to enable early identification of potential cost savings opportunities. TORI activities included:​

Establishment of a baseline cost spend and actions for execution in subsequent phases

  • Establish cost baseline spend​
  • Agreement on methodology, approach and contract classification with a view to enable early identification of quick wins and validation of benefits​
  • Detailed Consumption and entitlement analysis​
  • Specific focus on key and substantial items including review of Security solutions and spend​
  • Use of TORI Internal Benchmarking  to identify cost take out opportunities ​
  • Identification of cost saving buckets /options across short, medium and long term​
  • Identification of risks and associated actions to implement identified options​

 Future opportunities identified currently not in scope

  • Review of tail end suppliers, cloud infrastructure rationalisation and extension of TCO analysis​

Outcome & Results

  • Assessed and established baseline contract spend taking account of pre and post divestment​
  • Identified 41 cost optimisation opportunities with a savings of ~£14.3M (~15% of spend) with short term execution opportunities of ~£8M
  • Clear action plans to expedite the execution against each opportunity identified and socialised​
  • Roadmap for future additional savings identified (i.e. Tail end supplier rationalisation, cloud infrastructure rationalisation and extension of TCO analysis) which is expected to provide additional savings of ~10%

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