Automotive captive finance company IT service and delivery model improvement

A captive automotive finance company had highly variable cost and performance among its infrastructure and application maintenance vendors. All applications received similar levels of service and equally shared costs irrespective of business criticality, and there were insufficient controls embedded in contracts. The client wanted to change its IT delivery model to improve performance and share more risk with suppliers.

Strategy& defined an IT sourcing strategy for the client which included an assessment of the retained organization, development of an RFP, identification of capable suppliers for scoped services, development of target economics, vendor negotiations, and definition of key deal terms. We supported execution of IT outsourcing transactions for all major infrastructure and application services resulting in savings of over 20% versus current economics.