Enabling Rapid Revenue Growth for a Global Pharmaceutical Company

Executive Summary

Acting on an internal strategy of doubling its revenue in seven years, a multi-billion-dollar global pharmaceutical company began to examine how its IT service organization could best support anticipated product and services growth in emerging markets.

With Everest Group’s assistance, this organization designed an enterprise-wide IT sourcing strategy that established the economic, organizational and governance frameworks for selecting, integrating and managing a hybrid,  provider environment for both infrastructure and application services. The newly implemented structure enabled the organization to select and integrate global IT service providers in a more rapid and cost effective manner.

The Client’s Challenge

There were several specific challenges involved as the pharmaceutical company embarked upon its new strategy. They included:

• Overcoming limited experience in managed provider environments
• Creating a flexible solution to meet demands on IT services while avoiding the up-front capital expenditures associated with creating new capabilities
• Addressing an uncertain demand and delivery footprint, (i.e., what IT services would be needed and where)
• Creating a solution that would yield cost advantages over ongoing operational expenditures for current services

Insight to Action

Everest Group facilitated joint working sessions with the business unit and IT services executives that focused on identifying changes in IT services, (e.g., performance, costs, delivery location and regulatory requirements),  required to support the global expansion strategy. With the requirements baseline in place, Everest Group worked with the IT organization to identify and assess multiple sourcing strategies and structures. Upon agreeing on a hybrid solution, Everest Group worked with the pharmaceutical company to develop operational guidelines for selecting and managing a multi-provider environment.

Impact

Everest Group enabled the pharmaceutical company to develop an effective strategy to accelerate its growth. It also helped the company avoid the pitfalls of the traditional method of splitting sourcing solutions based upon tower functions. Additionally, the engagement provided the pharmaceutical company with the evergreen tools and templates needed to manage the services and financials of a multi-provider solution. The final result was a sourcing solution framework that offered extensive flexibility as the company’s sourcing needs evolved and changed.