WGroup helped a major insurer improve IT service delivery and reduce costs while working with an incumbent partner. The insurer was dissatisfied with poor service levels and high costs. WGroup conducted a discovery process and helped shift goals from standard metrics to business needs. They helped draft an RFP and the incumbent partner developed a new solution with improved service, expanded scope, increased automation, and reduced costs by 39%. The insurer was able to continue its partnership while better meeting goals.

1. Negotiating
Better Solutions
with IT Partners
Drive Your Business
Case study

2. See how WGroup helped a major insurer fix service
delivery performance issues while working with an
incumbent partner – developing an innovative solution
to improve service and reduce costs.

3. The client, a leading insurer, had a long relationship with an IT solution
provider. The provider offered services for servers, storage, network, DR and
end-user services including service desk for approximately 9,000 employees.
1OPPORTUNITY
The client, however, was dissatisfied with
the service levels being offered, and wanted
to explore other options that could improve
performance and reduce costs.
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4. Although the provider had been
consistently meeting the terms of the
dated, legacy contract, the client felt
that the provider’s performance was
severely lacking. They were only
performing to the bare minimum of
contract requirements, rather than trying
to meet end-user needs.
Governance had become stale and
ineffective on both parties behalf.
Perceptions were that the provider was
performing very poorly, and efficiency
within the company was suffering
as a result.
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5. The client had fallen into the “watermelon
effect” trap, wherein providers meet
service-line agreement (SLA) terms but don’t
actually deliver on end-user performance.
This occurs when the terms defined in the
SLAs are based on arbitrary metrics instead
of business goals.
In order to reduce costs and improve end-
user experience, the client contracted
WGroup to help them put together an RFP
and work with providers to develop a more
effective solution.
The “watermelon effect” trap: SLAs appear green on the
outside, but look red from the end user’s perspective.
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6. 2APPROACH
By gathering a consensus view from both
the client and provider, it was possible
to form a more complete set of goals that
addressed a wide range of needs. This
provided the foundation for the future work
of drafting an RFP and working with a
provider to develop a better solution.
WGroup approached the problem by engaging in a detailed
discovery process to identify the root problem – and to begin to
define a target future state solution.

7. WGroup reoriented the goals of the solution from industry standard metrics to
measurements of how it would actually affect end users and business needs. Shifting the
focus from IT to the business as a whole allowed the client to incorporate more helpful
expectations into their RFPs, leading to more effective solutions.
WGroup also helped the client select providers that had the greatest potential to meet their
needs. Reviewing a wide range possible options, the consultants at WGroup used their
extensive contacts and industry knowledge to put together a viable short list of providers to
which to submit RFPs.
A multi-pronged approach
reduced risk for the client.
As the culmination of this effort, WGroup
helped draft an RFP for service desk
and desktop services and a sole source
term sheet for all other IT infrastructure
operations.

8. 3INSIGHT + ADVICE
WGroup recognized that the client’s current solution was not meeting end users’
expectations driving business goals. To help them rectify the situation and develop a
solution that more effectively met the needs of the organization, WGroup leveraged
our breadth of experience in solving complex IT delivery and governance models
and best practices.
Through our structured RFP process targeted at
soliciting certain key delivery models while allowing
for provider creativity and customized solution
enhancements, the client received the most innovative
solutions to the problem.
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9. The sole source scope was addressed by engaging in open and candid dialog with
both the client and provider to clarify perceptions. A revised agreement was made using
market-based terms and conditions and by preparing market pricing.
Despite the failure of the client’s current provider to meet the needs of the end user, the
client valued their relationship and decided to allow the provider to submit their own
proposal. The client now had a clearer understanding of their goals from direct market
analysis, which gave them the ability to draft an outline for a more effective solution.
Ultimately, the client took the collective solution to the current provider. The provider then
built a solution to the new specifications.
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10. This approach let the client continue their long
relationship with the current provider, while allowing
them to benefit from outside ideas and build a
solution that better met their needs.

11. 4RESULTS
The client’s current provider was able to develop a
much more effective solution that met business needs,
reduced costs, and improved service levels. The
solution included end-to-end service, with a service
desk, desk-side assistance, ID administration, and
software distribution.
The new solution helped to improve user satisfaction
and increase productivity, while also increased its
scope to include Canada, significantly expanding the
number of employees served.
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12. In order to reduce costs, the new solution made much
greater use of automation. In the legacy solution,
even simple tasks such as password resets required
human intervention, greatly adding to the overall
costs and causing frustration for end users.
With the implementation of new data analytics
functionality, the new solution more easily
allocates resources and solves problems.
Self-service and a wide
range of automation
functionality improves
effectiveness and reduces cost.
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13. The new solution is much more user-oriented. The addition of a Tech Café that
allows users to get in-person help and drop off devices for service is one of the
details that improves employee experience. The decision was made to shift service
from email to chat, further improving customer satisfaction and allowing problems to
be solved more quickly.
Even with the increased scope and performance of the
new solution, it is much more cost-effective than the legacy
solution. The contract was also reoriented, so instead of
payment for effort, the client pays the provider based on
the end results. This provided much greater incentive for
the provider to continue to perform as expected.
The new solution will cost the client an estimated
$100 million over a five-year term.
This respresents a 39% savings over the legacy solution.

14. With the help of WGroup, the client was able to
continue to work with their longtime partner, while
meeting their goals of reducing costs, improving
service, and driving business goals.

15. 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.
Visit us at www.thinkwgroup.com or give us a call at
610-854-2700 to learn how we can help you.
150 N Radnor Chester Road • Radnor, PA 19087
610-854-2700 • ThinkWGroup.com