Case Studies - Fortune 500 Company using Multiple Outsourcing Vendors

The Problem

A Fortune 500 financial services company needed a process to manage an existing large scale offshore outsourcing program. When we initially met with the client, they had multiple offshore vendors working in various technology organizations within the company. There was no common process, vendor agreement, or ability to manage and measure the vendor activities across the company.

The Solution

After working with executive management and the outsourcing program management team, Backes Crocker determined that the client needed to develop and implement a program governance plan. This governance plan created the foundations of the internal business processes they needed to effectively manage multiple vendors working on a large number of projects. The objective was to provide the vendors and development organizations with a repeatable process for initiating, managing, and measuring a technology project - regardless of size and complexity. Parallel to this, we worked to encourage the client to bring all of their vendors under a common master services agreement and labor rate structure. This not only provided much needed intellectual property protections for the client but also assured that labor expenses were being managed. Finally, we generated a robust portfolio of metrics for the client to evaluate key measures on a regular basis. This allowed them to determine if the outsourcing initiative was meeting their intended goals.

The Value to the Customer

Our value to the client was in our ability to work within their existing outsourcing program and transition them from a distributed and passive program management model to a central and active program management model. Without this model in place, the client had no capability to manage the risks that are inherent to outsourcing. Our governance plan and metrics portfolio gave them the tools and ability to do that.