Cost Optimisation facilitates the identification, classification, reporting and ultimately the optimisation of technology and business costs; allowing enterprises to achieve and maintain cost competitiveness.
Technology cost management is a discipline which aims to ensure efficiency, agility, and competitiveness of the organisation, leading to cost frameworks which support Business growth and Risk appetite. ‘Winning firms’ will have optimised the supply side of technology costs, demonstrated the value of technology to stakeholders and have achieved symbiosis between technology assets and Business growth.
Our recent research has looked at how the best-of-breed companies have handled ‘Technology Costs in the New Normal’ and how incorporating continuous cost optimisation has provided competitive advantage.
Most organisations are faced with one of more of the following challenges:
- Senior Management does not have full visibility of overall costs across the Business functions making strategic decisions challenging or even impossible
- Minimal understanding and control of acquisition costs, operating costs and resources costs across the business functions
- Increasing Third-Party Supplier costs
- Lack of associated tools or processes to identify key Technology Costs
- Increased Legacy and Technical Debt
- No overall Cost Control Governance
- Minimal Management Information even for departmental attributable costs
How TORI Can Help
TORI have many years of experience in advising clients on all aspects of technology costs optimisation and how to maximise the value generated by rightsizing technology platforms. TORI provide alongside our traditional consultancy services:
- Undertake a review of your Third-Party vendor spend and provide comparison to competitors and Market Trends
- Review the Total Cost of Ownership (TCO) and identify opportunities for asset consolidation and optimal asset utilisation (Data centre rationalisation, Cloud adoption, cloud operating models etc.)
- Undertake a cost analysis of your Technology infrastructure and provide comparison to competitors and Market trends
- Highlight the true Technology cost for servicing your Business Units
- Review the IT Operating Model to identify if there are opportunities for further efficiencies for staff and third-party vendor spend.
- Assess if your Technical Debt is being effectively managed
- Develop a holistic Cost Transformation strategy that optimises the Technology organisation based on changes to the supply-side technology commercials
Asset Management FY23: With Shrinking Revenues has Cost Fungibility of Technology Finally Been Addressed?
30 January 2023
The phenomenal growth of AuM, revenue, and profitability for Asset Managers during the last decade has been reversed, driven by falls in stock market valuations across almost all asset classes impacting both management and performance fees.
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.
$25m Cost Reduction For Tier 2 Global Bank
09 June 2020
Our client was a Tier 2 Global Bank with a presence in 13 countries across the world and around 42,000 employees. As part of a contract review, the client asked TORI to review onshore and offshore application support and development services from a major Indian services vendor.
Following M&A activity, the client sought a significant cost reduction by consolidating their third-party spend across the newly combined business.
After an internal assessment, the client identified operational inefficiencies and gaps against regulatory standards for third-party management which posed a serious legal and reputational risk to the firm.
Given the critical nature of Technology in most enterprises, that embed the Business Units with DevOps teams for their market-facing IT applications can internalise agility and better respond to market events.
The client had a decentralised operating model having grown through multiple small business acquisitions.
IT Cost Optimisation UK Insurance & Investments
01 June 2022
The Client requested that TORI review their existing Software Asset Management (SAM) renewals process.
A leading RSA-based Investment & Insurance Services Group with corporate customers across key market segments in 14 African countries made a commitment to their shareholders at the end of 2019 to deliver cost efficiencies amounting to R750 million by the end of 2022.
Business Cost Optimisation UK Insurance Company
18 October 2022
A leading UK Insurance company faced a challenging macroeconomic environment of rising costs and high inflation and had been trying to identify ways that they could reduce the cost base for their Menu Protection product line which had been increasing over the past few years at a faster rate than new sales, resulting in decreasing profit margins.
Reducing Complexity, Driving Standardisation & Automation
22 February 2017
A Tier 1 global investment bank with clients in over 100 countries and assets of $2.3 trillion, wanted to identify a strategic partner to assist in the delivery of a standardised and highly virtualised technology platform and the operation of its core IT infrastructure services.
Three Ways CROs can Reduce Overspend While Maintaining Risk Function Effectiveness
27 September 2019
Risk and Compliance functions are constantly under pressure to reduce baseline operating costs without compromising their performance. However, this is inversely proportional to the ever-expanding remit and size of these functions, presenting CROs with a major challenge.
Financial Services organisations are being challenged to review cost structures and increase productivity, all the while making deeper, faster, safer and more automated changes to keep pace with competitors.
Reconciliation, Implementation & Maintenance
Financial services firms need effective, automated reconciliation to deliver against their business and client service goals and regulatory obligations.