Adding an ISG advisor to a project team facilitates an efficient and cost-effective contract for this healthcare and pharmaceutical company.
![Button-CS-Opportunity Opportunity](/images/default-source/default-album/button-cs-opportunity.png)
Opportunity
In early 2014, this healthcare company engaged the market on its own to source the application maintenance and development for its SAP environment. It needed to replace a short-term agreement that ISG had helped structure in 2012. Although pricing indicated significant savings opportunities, the company-developed RFP led to high variability in the responses from service providers. This made it difficult for the project team to evaluate the proposals, articulate a clear down-select recommendation and get to signature with its preferred provider. An ISG director was engaged and embedded in the team to help quickly bolster it and provide subject-matter expertise and project leadership.
![Button-CS-Imagining Imagining IT Differently](/images/default-source/default-album/button-cs-imagining.png?sfvrsn=4299e431_0)
Imagining IT Differently
In three weeks, ISG developed a complete service description based on market best practices. The description included significant improvements in multi-vendor cooperation and proactive maintenance as well as significant leverage of knowledge management and "shift left“ ideas.
After leading the team through a down-select process, the ISG advisor completed a set of sourcing agreement documents and led the company through the final negotiation. The advisor’s experience led the company to signature-ready contract documents within 60 days of engagement.
After leading the team through a down-select process, the ISG advisor completed a set of sourcing agreement documents and led the company through the final negotiation. The advisor’s experience led the company to signature-ready contract documents within 60 days of engagement.
![Button-CS-Future Button-CS-Future](/images/default-source/default-album/button-cs-future33d58f95f6446a14bdc7ff0000f6f5b0.png?sfvrsn=88f8e531_0)
Future Made Possible
- The company was able to realize significant savings. Though it had hoped for $5 million in savings, with ISG’s help, it obtained $17.4 million in savings – more than triple its original goal.
- The company also was able to implement modular or component-based pricing to facilitate potential future XaaS replacements of ERP modules.