Baselining gives a realistic cost analysis to help a client decide whether to outsource while moving a department to a new building.
A large multinational financial services company considered transferring the support it provided for 2,500 end users to an external provider that was working with other departments already. The company wanted to know whether the cost made sense.
Imagining IT Differently
ISG provided a scoping framework to systematically capture cost and volume information necessary to baseline the current mode of operations (CMO). With that data, the client could do a like-for-like comparison of the CMO with the services offered by the external provider. The risks associated with both options were revealed and evaluated.
Future Made Possible
- The action projected a savings of 1.1 million euros in less than a year.
- The client could make a fact-based decision and point to the savings, which amounted to about 25 percent of the department’s operating expenses.