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Case Study

Governance assessment plugs value leaks of up to $4 million

Through ISG’s Value Leakage Assessment, a global software company found and fixed gaps in IT governance.

Opportunity
Opportunity

A leading software company operating in 50 countries wanted an objective evaluation to learn whether it was getting the most from its sourcing relationship and to find any points of value leakage.

Imagining IT Differently
Imagining IT Differently

ISG incorporated the Value Leakage Assessment (VLA) into the contract renegotiation, so actionable recommendations could be implemented as part of the new agreement. The VLA process comprised a detailed review of client artifacts, including specific contract documents, related artifacts and governance library documentation. ISG also interviewed governance, security and eCommerce leaders, along with 33 additional IT governance staff members.

The analysis uncovered overly complex lifecycles for projects, a main outsourcing partner too loosely governed and not meeting contract expectations, and new IT investments that were not aligned with the original sourcing strategy.

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Future Made Possible

  • The client identified $4 million in savings.
  • The solution streamlined the service delivery processes.
  • The client moved away from staff augmentation and closer to shared services.