The Client

One of the worlds largest I.T. outsourcing providers. They provide application management services, development and systems administration to one of their largest Telecommunications clients.

The Issue

The client was not happy with the service delivery and value of the provider’s application organization, and was contemplating scaling down the service, and transitioning it to a lower cost provider in India, or moving it back in-house.

The outsourcing provider was losing money on the service. They needed to retain and grow the account, but also make it more profitable at the same time.

Approach

Implemented functional delineation between the various parts of the application organization. Separated people and process between Change (Projects and Programs), and Operations and Support. Utilized the Profiled IT People I.T. Services Operating Framework.

Implemented standard Project, Program, Operations and Support management processes and frameworks (ITIL®, PMBOK®)

Profiled existing management and staff and assigned them to the most appropriate roles that aligned with their respective talents and skills.

Implemented a service definition and pricing framework that distinguished between Change, Operations and Support services for each of the core application platforms of the client.

Re-negotiated the application management services agreement with the client along the new lines of service delineations.

Relentlessly drove practice maturity through the individual functions by providing clear goals and implementing ongoing metrics and performance management practices for all management and staff.

Results

For the first time in the history of the Account, the availability of their applications improved four fold to the point where there were no unplanned service outages for a continued period of 2 months. The number of unplanned outages across the portfolio of 250 applications for the same period a year before were around 400 (per month).

The client renewed the business with the outsourcing provider.

The Account revenue grew 25% in the first year with a 10% profitability gain.

The client adopted the same practices for applications not outsourced to the vendor. This bore testimony to the value they saw in the intervention.