Our customer, a large transportation company with over 50 subsidiaries worldwide, didn’t have transparency on the make up of their global IT costs (just one overall number known, with low degree of accuracy), and there was no overview or controls on IT projects executed globally.
What We Did: IntelliCo Solutions set up an outsourced project management office, with several objectives. First, it enabled the customer to implement a consistent IT cost chart of accounts across 50+ subsidiaries, giving them significant detailed IT cost and IT headcount transparency. Second, the PMO established governance controls over project initiation, funding and status reporting. Finally, the PMO took over some common project tasks such as investment documentation, board presentations and project audits.
Result: With the improved cost transparency, the customer was able to reduce their IT cost by 15% in the same year, while ensuring that costs don’t come back on board during the next year budget approval. Headcount was also reduced, in some sites up to 30-40%. Another round of 10% reductions in the following year was spearheaded by the project management office.
Follow-up: The customer has now decided to in-source the PMO function, and is establishing a team in their own operation in India. IntelliCo Solutions is participating in the ramp-up of the new PMO, providing staff selection and training, knowledge transfer, and quality assurance of the new operation. The customer has an ambitious decision-to-operation timeframe of just 6 months, which looks to be on target to achieve.
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