The client is a major provider of both software and business processing outsourcing information technology services to the insurance industry. They have been extremely successful in developing and penetrating the market for insurance and financial industry software. In recent years, the client has further expanded into the rapidly growing market for providing information technology services to its clients, as well as providing back office support to their clients.
The client is in the process of changing their image from that of a software provider to the insurance industry to a major provider of information technology and services and is utilizing alliances with key technology partners to achieve that end.
Problem Project Abstract Summary
The client presented TBI with two challenges:
- A well-established technology vendor presented the client with a proposal to outsource the client’s entire IT function stating that they could save PMSC a considerable yearly amount.
- The vendor offered a strategic alliance with the client that would leverage their technical expertise to help the client enhance their image as an outsourcing service provider to the industry.
After meeting with senior executives at the client, TBI recommended a two-fold approach. First, TBI recommended a boundary study to validate that outsourcing would be beneficial to them and that there were no hidden problems that would prevent entering into a successful outsourcing
The next step was to perform a comprehensive due diligence effort to validate both the potential savings and capability of the selected vendor to satisfy their needs.
Based on TBI’s findings, the client chose to enter into a 10 year outsourcing agreement covering their data center, help desk, wide area network, and voice communications with a study of desktop service, and local area network to follow.
After providing deal closing guidance and assistance to the client, TBI then provided implementation assistance during the transition phase.
Successful Business Solutions
The client received:
- Analysis of outsourcing options
- Well-structured contract and statement of work
- Benchmarking approach to ensure most favorable pricing over the life of the contract
- Transition plan monitoring
- Methodology for maintaining a high level of customer satisfaction
- Outsourcing relationship management