WGroup helped the client develop a plan to integrate its disparate data, voice, and video networks into a global shared services organization and find a service provider to deliver and manage it based on the client’s business requirements. WGroup analyzed the client's network architectures, operations, and management functions to devise a consolidation plan. They also helped build a business case for outsourcing and created an RFP to identify a service provider that could provide world-class network operations globally at the required service levels. This allowed the client to transform its network into a more efficient and innovative shared service.

1. Opportunity
As part of its overall business strategy
to expand into new markets, operate
more efficiently, and become a more
agile global competitor, the automotive
manufacturer and retailer needed to
develop a more efficient and responsive
data, voice, and video network.The
company’s four business units utilized
separate networks—functional silos
that were interconnected but not truly
integrated. Because they did not share
a common network backbone, each
business unit had to maintain its own
network. Each network operation used
different tools and processes to monitor,
manage and operate the network.
None of them employed industry
standard processes, best practices
or state-of-the-art tools. Personnel
who managed one network were not
transferable to other business units.
The client wanted a seamless
enterprise-wide network with world-
class technology components and
ITIL-based processes that would
integrate with its recently outsourced
Service Desk, improve business
processes, and to drive innovation.To
help decide who should deliver and
manage its network operations, the
company reached out to WGroup,
an expert in outsourcing, IT and
business operations. Working closely
with WGroup, the client proceeded
methodically and confidently to
develop an RFP to select a service
provider that could deliver an
integrated global data, voice, and video
network. WGroup also facilitated
vendor selection and assisted with
contracting and transition processes.
Approach
One of WGroup’s first tasks was to
help rationalize the initiative. Which
processes should the client perform
in-house? Which processes can be
done better and more cost-effectively
by service providers, and which ones
shouldn’t be done at all? Working
with the client, WGroup analyzed
the disparate network architectures,
operations and management functions
to devise a plan for consolidating
all network operations into one
integrated global network. After
carefully reviewing each business
unit’s network requirements and
evaluating the risks with the client, it
was decided to conduct two parallel
outsourcing efforts, one for the retail
outlets and another for corporate and
manufacturing locations.To build a
business case for outsourcing network
operations, WGroup helped the client
conduct a baseline validation comparing
the total cost to acquire, manage, and
maintain the network in-house to
what the client could expect to spend
Drive Your Business
Outsourcing Network
Operations
WGroup helps automotive giant drive IT innovation
and improve the end user experience
Automotive | Network Outsourcing
1
WGroup helped the
client develop
a plan to integrate its
disparate data, voice,
and video networks into
a global shared services
organization and find
a service provider to
deliver and manage it
based on the client’s
business requirements.

2. WGroup’s methodologies helped
keep vendor selection objective and
thorough.The RFP evaluation factors
were weighted by the client core
team and “sealed away” before vendor
evaluations began.This provided an
auditable trail that lead to fair and
objective vendor evaluations. During
oral presentations of prospective
vendors and due diligence with the
finalists, WGroup ensured that all
vendors addressed the same issues
and that these were the issues most
important to the client. During
contract negotiation, WGroup provided
a detailed negotiation “playbook” which
helped the client keep track of bidders’
important terms and conditions.
Value Delivered
WGroup worked with the client to
ensure the business case to outsource
network operations aligned with the
client’s strategic objectives, and that
the selected service provider had
the capability to deliver world-class
network operations at the service levels
the client required.The client moved
toward to an integrated data, voice,
and video network with the power to
transform the way users communicate
throughout the enterprise.The
network was designed as a shared
service, providing enhanced security,
consolidation of data centers and staff,
advanced collaboration, and a much
better end user experience.The client
benefits include significant spend
efficiencies and cost savings that it
can reinvest in business innovation.
in the marketplace.The company’s
global reach and multi-country
business operations required the service
provider to have an extensive domestic
and global work force, as well as a
partner approach adequate to take on
the client’s networking challenges.
WGroup created an RFP to identify
a service provider with the capabilities,
global presence, and industry-best
service levels the client required.
The initial phase of the project
consolidated access points to the
Internet from within the corporate
network, piloted a new retail network
and upgraded the corporate voice
network to enable collaborative
environments such as web meetings.
Insights and Advice
WGroup developed a rigorous base
case cost model, taking a bottom-up
look at all of the costs associated with
the network and breaking them out to
show the cost of functions currently
delivered or desired to be delivered
to end users.The cost model clearly
identified network costs for each
business unit and for the enterprise
as a whole.To ensure that the model
would accurately represent operating
costs, and hence correctly inform
business decisions, WGroup based
the model not on budget forecasts
but on actual expense data provided
by the client. WGroup compared
the base case to prevailing industry
market rates for the services the client
intended to outsource.This gave
the client an accurate picture of the
potential cost savings and performance
improvements they could expect from
outsourcing network operations.
Contact Us
WGroup
301 Lindenwood Drive, Suite 301
Malvern, PA 19355
610-854-2700
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About WGroup
Founded in 1995, WGroup is a boutique management consulting firm
that provides Strategy, Management and Execution Services to
optimize business performance, minimize cost and create value. Our
consultants have years of experience, both as industry executives and
trusted advisors, to help clients think through complicated and pressing
challenges to drive their business forward.
For more information on WGroup, visit http://thinkwgroup.com