Case study: How to get high performance
How we get the high-performance through business process outsourcing?
A company is a leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. With more than 30,000 employees worldwide, the company readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Its annual revenues exceeded $11.29 billion in 2011.
There are two business challenges for this outsourcing program. First, this global insurance brokerage had grown through acquisitions over the company’s first 20 years, but did little to push systems or process integration and so was having difficulty extracting economies of scale from its collective IT infrastructure. When synergies failed to materialize after a series of large acquisitions, the firm’s share price began to drop. Second, a new CEO decided that the company needed to reduce its IT budget by 40 to 50 percent ― without sacrificing its competitive position or its efforts to achieve high performance. The company decided to team with Accenture to integrate and consolidate applications across the organization as part of a six-and-a-half year application outsourcing agreement.
Accenture acted as the main application maintenance and development outsourcing provider to all four of the insurance group’s constituent companies. Accenture’s Global Delivery Network provided many of the Avanade (a subsidiary of Accenture) resources needed to help Accenture manage and implement solutions on the Microsoft platform. 80 percent of the company’s application support roles were moved offshore to Accenture’s Global Delivery Centers in Bangalore and Chennai, India, providing round-the-clock help desk support to business application users. This four-month transition project involved 300 people, 350 systems and over 200 different technologies.
Accenture helped the company realize an application management cost reduction of more than 36 percent from day one, helping the company meet its IT cost-cutting targets. Accenture’s work has also provided common processes and tools making application management more efficient and effective, and successful migration to Capability Maturity Model Integration (CMMI) level 3 certifications, flexibility to dedicate IT resources to additional business requests. The company has leveraged Accenture’s IT mastery to achieve integration, simplification and standardization of its disparate systems.