Building In-House IT Delivery

A Case Study

case study - IT transition business case results

Case Study Summary

The services unit of a large integrated healthcare firm needed help gaining control over their growth and expansion. Growing rapidly, primarily in platform-based services for the healthcare payer segment, they also were expanding the development of intellectual property in the form of platform-based services and applications. With much of the development and support being fulfilled by third-party service providers leveraging a global delivery model, they needed to establish a structure that would enable them to manage a challenging list of objectives: sustain delivery of high quality services in a 24×7 capability, enhance value to their sister companies and third-party commercial accounts, provide access to a larger talent pool in a cost-competitive location, establish in-house capability to protect IP, drive continuous improvement, and achieve a faster rate of innovation.

We were instrumental in both defining the strategy to establish a global delivery center and supporting our client through to strategy execution:

  • Clarity objectives up front to help our client craft guiding principles to make informed decisions throughout the process that tie back to the initial objectives
  • Guide the decision-making process through all elements involved in establishing a global delivery center, including making decisions on set-up model, location and site selection, operating model, transition plan, and risk management process

We partnered with the client to define and validate a strong business case, from both the financial and service delivery standpoints

  • Define business case elements, investments, and timing necessary to drive an accelerated global delivery capability set-up, particularly in light of our client’s dependence on third-party providers
  • Support due diligence to confirm location and site selection
  • Manage processes to select and contract with service providers to assist with setup details (legal, real estate, business support services and core IT and business process services)
  • Provide a distinctive, data-based approach that empowered the executive team to accelerate decision-making while maintaining alignment with our client’s objectives, from strategy development through implementation

A key component of the project was effectively organizing and harmonizing a wide variety of stakeholders, including several incumbent third-party service providers that were advising our client across many areas. Our knowledge of sourcing and ability to bring unique insights to deliver value helped focus everybody on achieving the business objectives

We built an attractive business case for establishing a global delivery center that achieved savings of more than 20%.

We brought a unique perspective to this challenge:

  • We drove a decision-focused approach that yielded fast progress and quality results
  • Our approach involved informing decisions with fact-based research that only Everest Group could provide in a timely manner
  • Our intimate knowledge of sourcing enabled us to enforce discipline to focus the executive team on the key elements needed to drive progress and manage risks to deliver against the agreed-upon objectives, while simultaneously managing complex relationships with third-party service providers

Marvin Newell
Managing Partner
Contact Marvin
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