The client had entered into a very large IT outsourcing contract in 2012 with a large global services provider. The performance against contract objectives had been less than satisfactory. The client needed expert advice to restructure the contract and drive operational and service quality improvements, while adjusting contract pricing to reflect industry benchmarks.

Background

The client is one of the largest health systems in the U.S, and has a broad national footprint that serves more than four million people each year through operations and facilities that span the continuum of care.

Business Case

The client had entered into a very large IT outsourcing contract in 2012 with a large global services provider. The performance against contract objectives had been less than satisfactory. The client needed expert advice to restructure the contract and drive operational and service quality improvements, while adjusting contract pricing to reflect industry benchmarks.

Approach and Results

Working closely with leadership, we were able to identify the appropriate measures of performance that would reflect internal stakeholder needs, and developed an entirely new framework for restructuring the contract and driving joint accountability for the future state goals and objectives . Through a series of workshops and in-depth discussions, we were able to drive agreement on the right critical performance indicators and a service quality improvement framework. Simultaneously, through an independent benchmarking of the cost of services, we were able to identify over 15 M million dollars in savings through targeted pricing adjustments.