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Case Study

Productivity gains for an old agreement

A benchmark analysis for a global pharmaceutical company shores up a major BPO contract.

Opportunity
Opportunity

Benchmarking uncovers gaps in performance and cost and charts the best path forward. Nine years into a business process outsourcing (BPO) contract for finance and accounting services in support of 300 full-time employees, our global pharmaceutical client asked ISG to review its original master services agreement and benchmark its terms, pricing, fees and service levels.

Imagining IT Differently
Imagining IT Differently

ISG analyzed a budget of $11,000,000 for services in three countries. A thorough benchmark review recommended a change to a fixed-price productivity model in one country, implementation of a continuous improvement process for all service levels, and the addition of more services to the master services agreement.

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Future Made Possible

  • Potential savings of between $2,000,000 and $6,000,000 over five years
  • Regular service provider management representation guaranteed business continuity and internal controls
  • Implementation of a more market-based methodology for determining inflationary adjustments
  • Additional productivity commitments and regulatory compliance by the service provider to reduce the burden on our client and minimize contractual risk going forward