Case Studies - Extended Enterprise
Business Challenge
A thirteen billion dollar global manufacturing company operating in over 300 locations in 66 countries was looking for ways to reduce the complexity of outsourced applications development projects by implementing a vendor marketplace structure.
Our Solution
Nathanson and Company implemented our Extended Enterprise in the form of an applications development marketplace that allowed for rapid engagement of multiple outsourcing partners. We designed and implemented an FRP process to select the appropriate partners and led the negotiations to formalize partner relationships. Each partner was subject to the same service levels, governance provisions and master service allowing for ease of partner management and rapid engagement of partner resources.
Results Achieved
The results were savings of 30%, a reduction of 60% in the cycle time to procure small projects and a significant increase in CSAT and the elimination of 70% of incidents involving cross vendor issues.
Business Challenge
An eleven billion dollar global technology and services company had just undergone a transition in Senior IT management. A new CIO was hired and was concerned that the company’s long term contract for application support was no longer market competitive.
Our Solution
Using our proven methodology, Nathanson and Company performed a rapid assessment and determined that the client was paying an overall premium of 30-50% for the services. Using the data we collected during the rapid assessment, we entered into negotiations with the outsourcing vendor and negotiated an immediate rate decrease in combination with a service improvement plan. Eventually the agreement was completely renegotiated.
Results Achieved
Within 90 days, Nathanson and Company was able to negotiate a retroactive rate decrease and ultimately a replacement of services. The new contract provided for services under superior terms and SLA’s at a savings of 42%.
Business Challenge
A fifteen billion dollar global manufacturing firm was 2 years into a 5 year, comprehensive multi-tower outsourcing agreement that originated as part of an acquisition.
The outsourcing costs were very high due to systems that were built to support a more complex enterprise than the business unit that was acquired and carved out of its parent and there was no flexibility to reduce it. The client had a limited budget to migrate off the systems.
Our Solution
Nathanson and Company entered into negotiations with the outsourcing vendor to find a path to lower the cost of the existing contract and provide for a transition to a new infrastructure that would allow the client to more easily absorb the acquired business into its current business infrastructure.
Results Achieved
Within 100 days, Nathanson and Company reached an agreement with the supplier to reduce the price of the existing services by 30.8% while retaining the same scope and SLA’s in return for a commitment to spend the funds on building out a new infrastructure, transitioning to it and signing a contract to support the new infrastructure. This saved the client $88,000,000.
Business Challenge
A major internet hosting company wanted to assess their Customer Care operations in order to determine ways to reduce costs and improve the efficiency and quality of operations.
Our Solution
Nathanson and Company conducted a rapid assessment of Customer Care operations. All aspects of Customer Care operations were reviewed including call routing and handling procedures, workforce management, and performance management and outsourcing agreements. Our assessment resulted in a comprehensive plan to reduce expenses while improve quality and sales.
Results Achieved
Nathanson led a transformation effort that reduced costs by 30% (double the client's objective), increased sales and improved client service across the board.
Business Challenge
A fifty billion dollar financial services firm had outsourced distributed computing operations to a major outsourcer. The client felt that process improvements and cost savings inherent in the original agreement were not being met.
The challenge was to renegotiate lower pricing and obtain service improvements without disrupting service to end users prior to the end of the contract - which was less than forty-five days away. In addition, the client wanted the flexibility to in-source some or all of the services over time.
Our Solution
Nathanson and Company entered into negotiations with the outsourcing vendor. Using our industry benchmarking methodology and outsourcing cost models, we quickly demonstrated that the services were overpriced and the service levels were below industry standards. Our team renegotiated the scope and worked with the supplier to design a get well plan to improve service.
Results Achieved
Within a few weeks we had secured an immediate cost decrease of over 25% plus the assumption of additional volumes at no incremental cost. The service provider committed to a ten point service improvement plan, more aggressive service level agreements and a timetable for service improvement as well the flexibility the client desired.