IT Cost Savings Program Management
Client Business Issues:
The information technology division of a major banking institution needed to identify and execute cost savings initiatives in the areas of IT operations and development. Important concerns of the client included achieving tangible short term savings and setting the stage for longer term savings while not negatively impacting performance quality or delaying current projects in progress.
The client requested that Arc Partners manage the cost savings project team consisting of employees from IT operations, development, and procurement.
Our Approach:
Arc Partners applied a systematic approach to the process of cost savings identification that included instituting a program management framework and leveraging the expertise of project team members. The project team included seven core team members supplemented by a dozen subject matter experts. Weekly meetings were held by each of the three sub-teams: technology operations, development, and procurement.
Cost savings initiatives were progressed through a series of stages including idea, feasibility analysis, business case, and implementation. Each initiative was vetted by core team members and specific subject matter experts. Promising initiatives were then reviewed with the steering committee and executive IT management for support and prioritization.
In addition to strong project team communications we leveraged the resources of the client’s IT Communications department to raise overall IT employee awareness and understanding of the need to identify cost savings opportunities. This included writing articles and presentations for distribution via newsletters, intranet postings, and employee staff meetings.
Value Received By Client:
Arc Partners assisted the client in identifying cost savings initiatives in IT operations, development, and procurement and achieved the following results:
- Identified fifteen cost savings initiatives; projected to save $17.5 million
- Improved reporting of IT savings and IT-enabled business savings
- Broadened employee recognition of IT cost savings importance
- Performed application cost analysis and strategic portfolio framework
The client was pleased with Arc Partners program management and subject expertise provided throughout the IT cost savings program initiative.