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The ClientThe client is a large transnational organization with diverse businessunits supporting core economic sectors inc...
Managing Experience2Business ChallengeThe client’s business environment was becoming cost competitive due toslow down in t...
Managing Experience3- Economic market analysis and price discovery: A detailed marketanalysis and intelligence effort was ...
Managing Experience4Key Results and BenefitsAegis delivered the following key benefits to the client:- Improve the capabil...
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IT and Telecom - Spend Management

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IT and Telecom - Spend Management

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Transcript of "IT and Telecom - Spend Management"

  1. 1. The ClientThe client is a large transnational organization with diverse businessunits supporting core economic sectors including bulk materialprocessing, utilities, services and with a presence across 25 countriesin the world.Managing ExperienceIT and Telecom SpendReduction for Large DiversifiedConglomerateOVERVIEWIndustry: Bulk Material Processing, Utilities andServices IndustryGeographies: Across 25 countries in the worldSolutions:- Support the cost optimization objectiveResults:- Improved capability of clients’ cross functionalteam- Delivered tangible savings- Reduced risks and improve process efficiencyCase Study | Outsourcing | IT and Telecom Industry
  2. 2. Managing Experience2Business ChallengeThe client’s business environment was becoming cost competitive due toslow down in the overall global economic climate. Over the recent years,the client had invested significantly in IT and telecom services to supportits global outreach and capacity expansion. However, with the revenuestreams being impacted, the client wanted a partner who could drivestructured savingsThe clients’ IT and telecom spend was not centralized and each businessgroup, operating site had the flexibility of defining the contractualrequirements, with no visibility at the group level.The client selected Aegis to identify, recommend, implement and delivercost savings for its existing IT and telecom spend of USD 30 million.Solutions Delivered by AegisAegis worked with the group’s Chief Information Officer (CIO) and ChiefProcurement Officer (CPO) to support the cost optimization objective.- Spend analytics and category level specification diversityanalysis: Aegis team deployed its comprehensive spend analyticsexpertise that analyzed the existing organizational spend byconducting a cross dimensional analytical cube using advanced toolsbased on Cognos / Ariba / SAP / Excel functionality consisting of theclient’s purchase order, contracts, invoice, supplier, inventory anddemand data. The team collected and analyzed the variance in thespecifications across all the group’s business entities, the operatingsites and defined the opportunities for rationalization.- Category level master specification and cost model development:Leveraging its deep category knowledge and the comprehensiveanalytics, Aegis category consultants rationalized the specificationsthrough effective cross functional participation and validation from thegroup / business unit CIO and CPO organizations. The consultantsalso developed a structured cost model (using its insight of the industrypricing models) to identify the key cost elements that govern the ITproduct / telecom services pricing across different suppliers.Case Study | Outsourcing | IT and Telecom Industry
  3. 3. Managing Experience3- Economic market analysis and price discovery: A detailed marketanalysis and intelligence effort was invested to understand theunderpinnings of the new emerging technologies on the IT / telecomOEM providers, the forecasted supply / demand situation consideringthe global market meltdown within these suppliers / providers anddeveloping a target pricing model. Some of the factors consideredwere telecom plans, utilization and growth of telecom usage, shift ofusage patterns as well as the new trends BYOD, desktop to laptop totablet shift and rationalization of end user computing power requireddue to enterprise management platforms such as CITRIX.- Strategic sourcing and RFx management: Having defined the keyrequirements and the target potential to save costs, Aegis then led aneSourcing phase where it managed the complete RFx cycle,supported client through both online and offline negotiations andhelped arrive at the new target price of acquisition thereby deliveringthe identified savings. Aegis consultants successfully renegotiated withglobal IT / telecom service providers including the likes of AT&T, DELL,HP, IBM, BT.- Closed loops spend control and command center: For the savingsidentified, Aegis team then coordinated with the clients cross functionalteam the new contract and setup the contract in the underlyingcontract management systems including SAP material module, SAPmaster data management module. Further, the Aegis team deployedand managed a quarter end reconciliation process to ascertaincompliance to the new contract and realization of the defined benefitsto the client.Case Study | Outsourcing | IT and Telecom Industry
  4. 4. Managing Experience4Key Results and BenefitsAegis delivered the following key benefits to the client:- Improve the capability of the clients’ cross functional team:Created a centralized sourcing team and strategic evaluation processat the group level to drive IT / telecom spend management on ongoingbasis.- Delivered tangible savings: Reduced client’s Identified cost savingsto the tune of 39%- Reduced risks and improved process efficiency: Reduced thevariance of existing contractual terms and specification proliferation forIT hardware and improved the overall installed bases support costs.Further through standard telecom contracts and common group wideplans, Aegis team was able to define a new employee voice / data /mobile reimbursement policy reducing the overall cycle time andinvoice processing cycle time at the clients accounts payablehelpdesk.About AegisAegis is a global outsourcing and technology company committed toimpacting clients’ business outcomes by focusing on enhancing customerexperience across all touch points and channels. Aegis was founded30 years ago in the US and now has operations in 56 locations across13 countries with more than 55,000 employees. Aegis services over 300clients from verticals such as Banking and Financial Services, Insurance,Technology, Telecom, Healthcare, Travel & Hospitality, Consumer Goods,Retail, and Energy & Utilities. The company is wholly owned by the EssarGroup, a USD 27 billion conglomerate.For more information write to us at info@aegisglobal.com or visitwww.aegisglobal.comCase Study | Outsourcing | IT and Telecom Industry

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