Zinnov helped execute a vendor consolidation strategy for a large american credit agency firm

1. Vendor Consolidation:
Case Study
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2. CASE STUDY 1:
Zinnov partnered with one of the three largest American credit agencies to define and
executive Vendor Consolidation Program globally (1/3)
Problem Statement
• Client had large IT operations and spent close to USD 400 million on its IT operations per year
• Over a period of time, they ended up working with multiple vendors, some vendors were due to the internal growth
and some due to the acquisitions (as the acquired companies had existing relationships with certain vendors). There
were around 700 resources across all vendor engagements
•
• The Client had no strategic relationships with these vendors
• The Internal Executives were not happy with the way the relationships were growing with the vendors
• The IT executives were not satisfied with the productivity that they were gaining
• The Finance Team was not happy by the billing rates that they were getting
• These vendors were a mix of large multi-national Tier-I vendors and Tier-II and Tier-III vendors in both India and US
•
• CIO’s office felt that these relationships weren’t cost efficient and they were not getting much value and productivity
out of them. There was no thought leadership coming out the vendors
• So the Client approached Zinnov to review the current operations and develop a strategy that would benefit the
Client in long run

3. CASE STUDY 1:
Zinnov partnered with one of the three largest American credit agencies to define an
executive Vendor Consolidation Program globally (2/3)
Reviewed
internal and
external
operations
1
• Zinnov interviewed the Executive Team in CIO’s organization to understand their current operations and the
ideal operations from globalization perspective. We also interviewed the IT team to understood their
requirements
• We looked at their future needs at corporate level and their expectations in terms of global sourcing
• We studied the markets in multiple geographies to see if the off-shoring market actually supports the Client
expectations and requirements
• We also benchmarked peer group of companies of the Client to see what was being done by done from
vendor’s operations perspective
• We visited vendor sites and reviewed their operations
Strategy for
Vendor
Consolidation
• Based on the internal and external research, Zinnov went back to the Client with a strategy for both short term
and long term
• We looked at various programs and projects that the Client was running, reviewed them and came up with a
recommendation for better consolidation of vendors
• For vendor consolidation, Zinnov looked at multiple factors that influence the success of the relationship, such
as the following:
o In-depth strategic partnerships
o Centers of excellence that vendors are going to have
o Project size and revenue expectations of the vendors to provide thought leadership back to the Client
o Capabilities of various segments of vendors: Tier-I, Tier-II, Tier-III
o Requirements of the Client
o Long term and short term goals of the Client: operational, financial and market related goals
o Reviewed RFI and RFP process and went for site visits
• We also looked at various Client projects and programs and identified which vendors have the most capability
to deliver in a cost efficient manner
• For each project, we identified a primary vendor and we ensured that there was a capability in a second vendor
from Business Continuity aspect
2

4. CASE STUDY 1:
Zinnov partnered with one of the three largest American credit agencies to define an
executive Vendor Consolidation Program globally (3/3)
• After analyzing all the vendors and the Client requirements, Zinnov came up with a Three Vendor Strategy:
o Zinnov recommended that the Client has to consolidate the vendors into predominantly three vendors
o Out of the three vendors, two were Tier-I vendors and one was a Tier-II / III vendor
• After selecting the vendors, Zinnov defined the term sheets and contracts and ensured the following:
o Each vendor understood the role that they were going to play in the relationship
o Clearly set the expectations of the Client for short term and long term for each program that they are
going to own
• Zinnov also developed a strategy for transitioning the projects from existing vendors to new vendors.
Transitioning of few projects was easy and simple but for some, it was difficult due to the complexity and life
cycle of the project
• Zinnov ensured that this transition happened without any impact on productivity and increase in the cost
• Zinnov developed a very strong governance model to govern the relationships between the vendors and also to
govern the successful outcome of each of the programs
Came up with
a Three Vendor
Strategy
Structured the
Right Contracts
and SOWs
Provided right
frameworks &
transition road
map
Defined right
governance
model and a
process of
monitoring
relationship
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5. Thank You
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