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At a Glance
Company Profile
The company is a multi-billion dollar international provider of food and agricultural products and services.
Services Featured
- Opportunity Analysis
- Outsourcing
- Service Provider Selection
- Negotiation & Contracting
- Transition
- Transformation
Business Processes Involved
- Information Technology (Helpdesk)
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Executive Summary
With a goal to double in size over the next ten years, this multi-billion dollar organization was looking to improve its back-office processes and service levels as well as identify cost-savings opportunities. The company retained EquaTerra to facilitate the transformation process, which resulted in the outsourcing of the company’s IT helpdesk function to a service provider. Overall, outsourcing enabled this company to gain a more efficient and lean IT helpdesk function.
The Business Challenge
Upon embarking on a ten-year strategy initiative to double in size, this company performed a cross-enterprise sourcing strategy assessment to identify opportunities for improvements in back-office process service levels and cost. Company executives determined the IT function (specifically, the client service helpdesk) was the most mature element of the portfolio of services that would be transformed, as it was the most transactional in nature and provided the least strategic value to the company’s position in the competitive market.
Additionally, company officials hoped IT would be a good testing ground for outsourcing, which would influence decisions regarding third-party outsourcing of other IT work streams and back-office functions.
How We Helped
To move forward with the transformation process, the company hired EquaTerra to perform an analysis of its desktop support functions. This included an evaluation of helpdesk/desktop support sizing requirements and the impacts third-party outsourcing would have on helpdesk end-users.
Following this analysis, EquaTerra identified which service providers possessed the capability to assume a project of this size and scope. EquaTerra led the evaluation of eight service providers and eventually requested proposals from four. EquaTerra also helped with the down-select and service provider selection processes. The selected service provider demonstrated the core capabilities necessary for the project, as well as a superior cultural fit with this organization.
Although this sourcing project focused transitioning only the North American IT helpdesk, EquaTerra helped construct a contract with the service provider that not only achieved terms and pricing in line with the market, but also could be expanded to a global scale in the future. The latter element was especially critical given the company’s interest in expanding the geographic and functional scope of the sourcing transformation, and this IT helpdesk project would serve as a predictor to the future success of the initiative.
Results
Most notably, the close relationship between company executives and EquaTerra resulted in an environment of mutual respect and trust. EquaTerra advisors became known for the purity and sincerity of their advice and were not afraid to interject opinions that differed from the executive’s current position on any topic. EquaTerra quickly gained a reputation for being personally invested in the success of the project.
EquaTerra advisors further demonstrated their unique ability to adapt to the company’s environment and culture while preserving value as independent advisors. They offered intellectual property and expertise in the areas of contract negotiations and the sourcing marketplace. Combined with the company’s strengths in processes and operations, this facilitated a company-service provider relationship that benefits both organizations and allows for continuous improvement in service levels and cost savings.
In fact, further contract review by EquaTerra resulted in an additional 4% savings over the initial contract cost – saving the client another $2 million per year. The deal value for the service provider was preserved in spite of this adjustment. EquaTerra also served as a general sourcing guide for the company, working with internal departments, operations centers and regions to transfer the knowledge that executives and operations managers needed to move forward in the transformed organization. This knowledge transfer was invaluable to the company.
Following the initial success in transforming the IT service helpdesk function, the company has begun the initial phases of similar transformations in additional IT work streams and in its Human Resources organization.
About EquaTerra
EquaTerra sourcing advisors help clients achieve sustainable value in their IT and business processes. Our advisors average more than 20 years of industry experience and have supported more than 2,000 transformation and outsourcing projects across more than 60 countries. Supporting clients throughout the Americas, Europe, and Asia Pacific, we have deep functional knowledge in Finance and Accounting, HR, IT, Procurement and other critical business processes. EquaTerra helps clients achieve significant cost savings and process improvement with internal transformation, shared services and outsourcing solutions.
