Sourcing Decisions Underpin Digital Transformation
A large financial services organisation was embarking on a major digital transformation programme. To enable this, its information technology applications and infrastructure required significant change.
We initially engaged with the client to assist them in developing a sourcing strategy to underpin the defined business goals.
The finalised strategy called for a hybrid sourcing model – in which some commodity services in the infrastructure and applications space were outsourced via a market tender process, while certain specific functions were retained internally, requiring skill-sets to be augmented in some areas.
ImprovIT was then engaged further to facilitate and drive forward the market tender process for those areas to be outsourced.
Using our best practice library of processes, templates and methodologies, we worked to accelerate the timeline without compromising the outcome. We employ both traditional and agile sourcing approaches, evaluating each client situation to determine the most appropriate approach, and in this case it was decided with the client that the more traditional process would be best for their specific situation.
The complex and wide-ranging nature of the sourcing strategy required multiple tenders, with most tenders consisting of several lots. Initially we worked closely with our client to define the specifics of the tender process. Timelines, tender and lot structures, service specifications and selection criteria were all discussed through a series of workshops.
We then developed the Pre-Qualification Questionnaires (PQQs) and associated evaluation processes. In parallel we also identified a list of potential suppliers for each tender. In scheduled and over-lapping activities, we developed the Information to Tender (ITT) document packages for each tender. This was then made available to those suppliers passing the various PQQ stages.
ImprovIT, working with our client’s IT leadership and procurement functions, managed both the PQQ and ITT processes and also led the scoring and evaluation phase. Two shortlisted bidders were identified for each tender and following a final BAFO phase, providers were chosen. The overall management and coordination of the suppliers will be achieved through an agreed SIAM framework.
Our client has achieved the desired blend of sourcing; commodity services are delivered by large-scale providers while newer digital services that provide market advantage are supplied by smaller, more agile companies. In-house skills have also been enhanced to provide the necessary structure and management functions required by the retained organisation.
Ongoing market competitiveness is assured through the inclusion of benchmarking clauses within the contracts. Benchmarking is a service that ImprovIT provide as part of its IT Performance services.