Wavestone US Benchmarking Advisory

Benchmarking helped set IT savings targets for a global imaging and electronics supplier Wavestone US (formerly WGroup) led a comprehensive benchmarking of the client’s outsourced IT managed services contract to create a tangible cost opportunity roadmap of ~33% besides several other solutioning and performance opportunities. We then executed the end-to-end RFP to Contract recompete lifecycle to seek the said cost and contemporary value targets. The compete lifecycle helped us unlock incremental competitive synergies resulting in 41% TCO savings (versus the upfront 33% benchmark target)

Savings Roadmap for H2 2019 IT Managed Services Contract

TOTAL TCO SAVINGS 33.3%

COST SAVINGS % BY OPPORTUNITY LEVER

7.8 %

5.2 %

2.1 %

2.1 %

16.1 %

Contemporary Automation-enabled Managed Services Model

Staffing Pyramid and Offshore Leverage

Right Sizing

Right Skilling

“Black Box” Fixed Price

Pricing

Benchmark managed services pricing instead of legacy T&M rates-based pricing

Best-in-class span of control and offshore leverage in provider delivery model

Optimized skill levels and elimination of over-skilled or under-skilled FTEs

Unlocking savings in opaque and overpriced fixed price contracts

Reduction of bloat in service provider team size

No research analysts – senior advisors lead benchmarking practice | No research rankings or pay-for-play with service providers | Partner-level staffing to support upstream planning/downstream realization

Benchmarking Advisory Lead Sarthak Brahma , Managing Director | sarthak.brahma@wavestone.com | O: +1 (610) 854-2700 | C: +1 (917) 715-0239

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