New CIO found his predecessor’s outsourcing strategy was short-sighted (and bad for the company).
Client: Mortgage Division in Bank
Category: Vendor, Transformation, Program Management
When a CIO found himself in a job where his predecessor had “saved” the bank money by outsourcing virtually all of the important mortgage processing functions, he discovered that the offshore vendor was now increasing the support fees because his own staff was losing the expertise required to monitor the vendor’s deliveries.
We worked with another consulting company, KNOWSYS, and developed a vendor decision framework and scorecard to help our client make better decisions about when and how to outsource to a vendor.
Part of our suggested technique helped CIO’s team save hundreds of thousands of dollars within six weeks of implementing the new decisioning process because they were able to challenge the vendor’s high estimates with facts they had developed using our process.
Designed and implemented vendor decision framework
Client saved hundreds of thousands of dollars within weeks of implementation
Positioned client to prepare longer-term strategy to realign which functions they outsourced vs kept in-house
Feeling comfortable about dealing with the current vendor situation, the CIO was able to develop a strategy to prepare his team to bring the more important mortgage functions back in house while leaving the less critical functions with the vendor.