It outsourcing strategy

1. CASE STUDY:
IT OUTSOURCING STRATEGY
NOVEMBER 2014

2. CASE STUDY :
Zinnov helped a large network infrastructure company in defining and executing IT
outsourcing strategy (1/2)
• Client had multiple vendor relationships, over 250 resources across the vendor engagements
• The Executive Team was concerned as they were not getting much value and capability out of the relationships. They were not satisfied
with the kind of productivity and talent that was being provided by the vendors
• The Client had a lot of small engagements with various vendors. They were running RFPs for small engagements as well and the vendor
who quoted the cheapest price, ended up getting the project. The selection was not based on the capability
• So Zinnov was contacted by the Client and was asked to review the operations and give recommendations to improve them
• Discussions with the Client Stakeholders: Zinnov spoke to the Executive Team and understood their current and the future operations
requirements
• Vendor Audits and Selection: Zinnov then audited all their existing partners for vendor consolidation. After auditing, we identified only
two vendors who had the right capabilities to fulfill existing Client requirements and make investments to develop future capabilities
• Reviewing of Contracts: Zinnov reviewed all contracts and found that the existing contracts were developed as per vendor- contract
templates, rather than the Client - contract templates. So once the capable vendors were identified, Zinnov re-negotiated the existing
contracts. We augmented the terms to ensure that operations relationship were briefed up and we brought in a lot of industrial data to
baseline these terms
• Developing a Governance Model: Zinnov developed a strategic governance model from scratch, as the Client didn’t have any
governance model in place
Problem Statement
Zinnov’s Approach

3. CASE STUDY :
Zinnov helped a large network infrastructure company in defining and executing IT
outsourcing strategy (2/2)
Vendor consolidation was done and
the Client finally had to manage and
work with just the two vendors
selected by Zinnov. This simplified
the process of managing the
vendors and building more
strategical relationships with them
Vendor Consolidation
The Client ended up working
with the vendors who had
domain expertise and who were
willing to invest into Client
operations. Working with more
capable vendors increased cost
efficiency and productivity
Working with most
suitable/efficient Vendors
Re-negotiated terms in the contracts
ensured that the Client was
protected from any uneventful
scenario
Contracts as per Client-
Contract Template
The new governance model
defined by Zinnov ensured that
the terms were captured in the
contract and that the relevant
operations terms were
monitored on a periodic basis
Robust Governance
Model in place
A lot of engagement ownership and
responsibility was transferred to the
vendors
Transfer of Ownership to
Vendors

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