Reducing IT costs to fund an automotive transformation.

Client context

The business context.

A global automotive manufacturer needed to reduce technology costs to help fund a broader digital transformation. IT spending was distributed across major regional operations, with limited central oversight of procurement and supplier arrangements.

Fragmented contracts, inconsistent spend visibility and unclear purchasing responsibilities made it difficult to compare costs or coordinate negotiations. Management needed immediate savings alongside a credible plan for changes that would take longer to implement.

The work

How the engagement was delivered.

• Build a common view of IT spending

  Established a consolidated baseline across regional operations, covering software, infrastructure and application services. Used it to identify the main cost categories and prioritize savings opportunities.

• Prepare and support supplier negotiations

  Reviewed contracts, purchase orders, license use and supplier correspondence. Developed negotiation targets and responsibilities, supported commercial discussions and addressed unnecessary payments and unused licenses.

• Separate immediate savings from structural change

  Supported near-term savings initiatives while defining sourcing options for application maintenance, infrastructure and change delivery. Set out a phased implementation plan and enabled internal teams to continue the work.

What changed

Near-term savings and a structured program for further reductions.

The engagement delivered reductions in recurring IT costs, including completed license-cost measures and infrastructure improvements coordinated with suppliers. A wider set of quantified initiatives and a phased implementation plan defined the next savings opportunities. Those longer-term savings remained delivery targets, separate from the reductions already achieved.