Transformation at Speed

International Food Distribution Company

An international food distribution company had embarked on a new business strategy to change its business radically, which in turn meant a new IT strategy was going to be required. The current IT services were provided mainly by a single managed service provider, and there was a concern that the current IT services would not support the new IT strategy.

Requirement

The CIO had already established a framework with one large managed service provider for application development, which had already successfully delivered the required SAP upgrade and enabled the company to embark on a major SAP development programme.

Attention has now turned to infrastructure and IT service management (ITSM) providers.  All other Infrastructure and ITSM were provided by a single managed service provider, except the mobile services.  This incumbent had a long-term contract (10 years) that had been extended once and was approaching another renewal anniversary.  The company’s board had raised concerns about the current performance of IT, and the CIO approached iCore to undertake a review of the existing services and provide a proposal on how to proceed and support them through the ensuing selection and transition work.

Approach

Service Review

The service review involved a benchmark of the costs and prices being paid for the existing services, users’ satisfaction with the service, a review of the existing operational model within IT, and a quick assessment of the technology.  The key findings of the service review indicated that there had been a lack of investment in IT for several years, aspects of the existing services were not providing value for money, users were very dissatisfied with the Service Desk, a lot of the existing technology was old, the in-house team had evolved to cover up for short-comings in the managed service provider, and the incumbent’s contract was approaching a point in time where there was an exit clause that would not trigger any termination payments.

Based on these findings, the main recommendations were to restructure the in-house team to operate more in line with a SIAM Model, follow more options analysis work, recompete the services to get better value, and use the opportunity to transform the technology.

iCore was asked to examine whether the Service Desk should be brought in-house. The conclusion was to keep it as a managed service but bring it near-shore.

Requirements and Selection

On iCore’s recommendation, the Networks and Telecommunications (Telecoms) lot was completed first as this was easily defined, and a shortlist was quickly agreed upon. This included the incumbent, but they chose not to bid. In the end, a specialist telecoms supplier was chosen, and iCore managed the transition of services to that new supplier over a period of three months.

For the Desktop, Datacentre, and Service Management (Compute) requirements, iCore produced a three-part Request for Information (RFI) that was issued to a chosen list of suppliers. The suppliers were invited to attend an open Q&A meeting before presenting their credentials. As time was of the essence, the CIO rejected single-lot responses and selected three suppliers who could deliver all three lots, plus the incumbent, to respond formally to the RFI.

The four became two through a series of proposals and meetings, including the incumbent. These two were asked to present their best and final offer, which was presented to the Board, which selected their preferred supplier, who was not the incumbent.

Negotiations and Transition

iCore managed the contract negotiations with the new Telecoms supplier and the new Compute supplier, working with the company’s legal and financial team, and the exit of the incumbent in both cases.  The Telecoms negotiations and eventual transition took 6 months, including upgrading the network components and the issue of new mobile SIMs.

The Compute services took longer to negotiate, which ran in parallel with the Telecoms transition, but the Compute transition did not commence until the other was complete.  The Compute transition was phased with the new ITSM services moving quickly after the contract was signed, as this was to manage the incumbent.  The new Desktop service was delivered next, enabling the new platform, followed by the other IT Services, which were transitioned into the new supplier’s Datacentre over a single weekend.  The whole transition took six months to complete.

Outcomes

The new Telecoms supplier delivered a more resilient network with extended capacity and performance, plus new mobile services at more reasonable tariffs.

The new Desktop, Datacentre and ITSM supplier managed the deployment of a new desktop (removing XP), transfer of services onto a new virtualised platform, a near-shore Service Desk, a lower OPEX rate, and within CAPEX constraints. During the transition, all termination fees were avoided and TUPE costs minimised.

The in-house team reorganised to become more business-aligned and to manage the services rather than technology. Importantly, they regained the trust and respect of the Business.

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