The client had recently moved to a centralized IT function. The IT budget was under scrutiny due to recent divestitures since the IT function was no longer supporting these divested business activities.
However the IT budget needed to be adapted accordingly while at the same time global platforms were rolled out to several entities, leading in many cases to (temporary) increased costs.
Project Execution
Activities:
- Breakdown of the IT cost and spending per IT service function
- Assessment of the cost efficiency
- Roadmap of cost savings: Initiative and activity calendar
- Contract maturity analysis providing agility and scalability
- Cost allocation and top down analysis
- Application portfolio rationalization with the full cooperation of Business
- Vendors/Contracts rationalization
- Increase granularity and accuracy of all metrics which drive run costs
- Establish Cost Optimization Governance (incl. analysis CMO and FMO)
Monetize quick wins and midterm goals
Deliver Savings:
- Develop a cost optimization strategy for the selected subcategories (incl. category management, ITAM, SLA management,...)
- Execute cost analysis and optimization strategies along savings levers
- Coaching and expert advice
- Determine savings initiatives per subcategory
PACT Association was the right partner for this Client because:
- We worked with an extensive network of IT experts (not only IT Procurement transformation specialists, but also ERP consultants, IT architects, IT legal counsels,…)
- We tailored the solution to the specifics of the Client. We have our toolboxes but we configured this standard to the need of the Client.
- The change was transparent for every P&L owner in the company
- Enablement is in our DNA: we are only successful if you are.
- The project resulted in a framework that was further rolled out by the client for all other categories within the organization.
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