Reshaping IT sourcing at a global luxury-goods company.

Client context

The business context.

A global luxury-goods company had built its IT function during a period of rapid growth. Application services were spread across many providers, a major infrastructure and service-desk supplier was underperforming, and the vendor-management function had limited influence.

IT needed to support a wider business transformation while lowering its own cost base. Supplier consolidation, delivery locations, service levels and the capabilities retained inside the company had to be considered together.

The work

How the engagement was delivered.

• Assess the cost and service opportunities

  Reviewed application development and maintenance, infrastructure, service desk, workplace support and the IT organization. Evaluated consolidation, delivery-location and service-level options against the existing spend base.

• Connect sourcing choices to the operating model

  Assessed how service bundles and provider responsibilities could change, alongside the capabilities needed in the retained organization. Made assumptions about addressable spending, productivity and transition explicit in the savings assessment.

• Prepare the transition

  Defined a phased approach to sourcing, tendering and implementation. Set out the transformation office’s mandate, workstream ownership, milestones and governance, with change management running alongside the technical transition.

What changed

A quantified sourcing case and a plan for delivery.

The work identified substantial savings potential, primarily from changes to the supplier landscape and delivery model. It provided a basis for sourcing decisions, retained-capability development and transformation mobilization. The savings were assessed opportunities; the supplier transition and benefits realization were still ahead.