The Client

The client is a large transnational organization with diverse business

units supporting core economic sectors including bulk material

processing, utilities, services and with a presence across 25 countries

in the world.

Managing Experience

IT and Telecom Spend Reduction for Large Diversified Conglomerate

OVERVIEW

Industry: Bulk Material Processing, Utilities and

Services Industry

Geographies: Across 25 countries in the world

Solutions:

- Support the cost optimization objective

Results:

- Improved capability of clients’ cross functional

team

- Delivered tangible savings

- Reduced risks and improve process efficiency

Case Study | Outsourcing | IT and Telecom Industry

Managing Experience

2

Business ChallengeThe client’s business environment was becoming cost competitive due to

slow down in the overall global economic climate. Over the recent years,

the client had invested significantly in IT and telecom services to support

its global outreach and capacity expansion. However, with the revenue

streams being impacted, the client wanted a partner who could drive

structured savings

The clients’ IT and telecom spend was not centralized and each business

group, operating site had the flexibility of defining the contractual

requirements, with no visibility at the group level.

The client selected Aegis to identify, recommend, implement and deliver

cost savings for its existing IT and telecom spend of USD 30 million.

Solutions Delivered by AegisAegis worked with the group’s Chief Information Officer (CIO) and Chief

Procurement Officer (CPO) to support the cost optimization objective.

- Spend analytics and category level specification diversity

analysis: Aegis team deployed its comprehensive spend analytics

expertise that analyzed the existing organizational spend by

conducting a cross dimensional analytical cube using advanced tools

based on Cognos / Ariba / SAP / Excel functionality consisting of the

client’s purchase order, contracts, invoice, supplier, inventory and

demand data. The team collected and analyzed the variance in the

specifications across all the group’s business entities, the operating

sites and defined the opportunities for rationalization.

- Category level master specification and cost model development:

Leveraging its deep category knowledge and the comprehensive

analytics, Aegis category consultants rationalized the specifications

through effective cross functional participation and validation from the

group / business unit CIO and CPO organizations. The consultants

also developed a structured cost model (using its insight of the industry

pricing models) to identify the key cost elements that govern the IT

product / telecom services pricing across different suppliers.

Case Study | Outsourcing | IT and Telecom Industry

Managing Experience

3

- Economic market analysis and price discovery: A detailed market

analysis and intelligence effort was invested to understand the

underpinnings of the new emerging technologies on the IT / telecom

OEM providers, the forecasted supply / demand situation considering

the global market meltdown within these suppliers / providers and

developing a target pricing model. Some of the factors considered

were telecom plans, utilization and growth of telecom usage, shift of

usage patterns as well as the new trends BYOD, desktop to laptop to

tablet shift and rationalization of end user computing power required

due to enterprise management platforms such as CITRIX.

- Strategic sourcing and RFx management: Having defined the key

requirements and the target potential to save costs, Aegis then led an

eSourcing phase where it managed the complete RFx cycle,

supported client through both online and offline negotiations and

helped arrive at the new target price of acquisition thereby delivering

the identified savings. Aegis consultants successfully renegotiated with

global IT / telecom service providers including the likes of AT&T, DELL,

HP, IBM, BT.

- Closed loops spend control and command center: For the savings

identified, Aegis team then coordinated with the clients cross functional

team the new contract and setup the contract in the underlying

contract management systems including SAP material module, SAP

master data management module. Further, the Aegis team deployed

and managed a quarter end reconciliation process to ascertain

compliance to the new contract and realization of the defined benefits

to the client.

Case Study | Outsourcing | IT and Telecom Industry

Managing Experience

4

Key Results and BenefitsAegis delivered the following key benefits to the client:

- Improve the capability of the clients’ cross functional team:

Created a centralized sourcing team and strategic evaluation process

at the group level to drive IT / telecom spend management on ongoing

basis.

- Delivered tangible savings: Reduced client’s Identified cost savings

to the tune of 39%

- Reduced risks and improved process efficiency: Reduced the

variance of existing contractual terms and specification proliferation for

IT hardware and improved the overall installed bases support costs.

Further through standard telecom contracts and common group wide

plans, Aegis team was able to define a new employee voice / data /

mobile reimbursement policy reducing the overall cycle time and

invoice processing cycle time at the clients accounts payable

helpdesk.

About AegisAegis is a global outsourcing and technology company committed to

impacting clients’ business outcomes by focusing on enhancing customer

experience across all touch points and channels. Aegis was founded

30 years ago in the US and now has operations in 56 locations across

13 countries with more than 55,000 employees. Aegis services over 300

clients from verticals such as Banking and Financial Services, Insurance,

Technology, Telecom, Healthcare, Travel & Hospitality, Consumer Goods,

Retail, and Energy & Utilities. The company is wholly owned by the Essar

Group, a USD 27 billion conglomerate.

For more information write to us at info@aegisglobal.com or visit

www.aegisglobal.com

Case Study | Outsourcing | IT and Telecom Industry