Sole-Sourcing Strategy for Enterprise IT Operations
The client, a major health system, was looking to expand their current relationship with a technology vendor to cover IT operations across the globe, and position the enterprise for digital transformation.
The client had signed an IT outsourcing contract a few years ago to cover significant part of enterprise IT including service desk, data center and network operations. The client was facing challenges with service level performance and accountability due to the selective nature of the scope of work. In addition, there was a desire to reduce costs further by leveraging a global operations model, and redeploy the savings to a digital transformation program.
Approach & Results
The vendor, a global technology firm, had proposed to come in a sole-source service provider to improve services levels and reduce total costs of enterprise IT through a combination of total outsourcing of infrastructure operations and process redesign. In addition, the vendor had proposed implementing an advanced analytics capability and developing/deploying digital health applications as part of the enterprise digital roadmap.
We helped the client evaluate the overall benefits of the proposed program, assess and benchmark the vendor’s capabilities and pricing, develop a business case and a set of recommendations. By working with a cross-functional team within the client’s enterprise, we were able to identify key stakeholder expectations from the proposed program and position the business case for consideration for an executive decision. By using an agile approach to the assessment and recommendations, proprietary research and benchmarking data and the use of online evaluation tools, we were able to complete the project and present our findings to the client on schedule. The entire evaluation and recommendations, including site visits and numerous stakeholder presentations, was completed over an eight-week period, significantly shorter than was expected. Our strong experience and background in the technology sourcing landscape, the healthcare IT environment, and our deep understanding of the needs of healthcare digital transformation were important elements in the value we created for our client in a relatively short time frame.