Leading Digital Media Company Achieves Significant Cost Savings Through Co-sourcing
Allied's co-sourcing approach helped a leading media service provider to achieve greater operational and cost efficiency with improved integration of information systems and communication across all business functions and platforms.
About our Client
The client is a leading global digital media and entertainment company who represent several television channels, offering the best in music, reality shows and related programming.
Digital media providers struggle to keep pace with technological innovation. They need to provide the kind of rapid, integrated information services that consumers have come to expect. With mounting competition from global, world-class providers of digital media and entertainment, the client received an internal mandate to achieve greater strategic focus via increased productivity and agility, whilst also realising cost efficiencies through globalisation.
The client had been outsourcing their IT services for a number of years, but they had begun to find that traditional contract-driven outsourcing was not yielding tangible benefits. It was too inflexible and it couldn't keep pace with their changing needs over time. As a result, they sought partnership with a flexible IT service provider who would not only share the responsibility for planning and delivering IT services on a global basis, but also the associated risks and rewards.
In this environment, IT outsourcing and off-shoring is not necessarily enough. Traditional outsourcing arrangements do not always provide the flexibility and responsiveness that media service providers need. Instead of a technology supplier they needed a technology partner - an organisation who is experienced in the globalisation process and prepared to share both the risks and the rewards of developing and delivering IT services.
We were approached by the client to prepare a strategy roadmap that would address the challenges faced by their IT operations and assist in their process of globalisation, including the following:
- Integrate information from various systems and locations
- Integrate IT with the company's strategic plan
- Achieve greater operational and cost efficiency
The Allied team of experts conducted a scoping study to understand the client's internal processes. The study also covered existing processes that were being outsourced; including processes that were being used by existing outsourcing vendors. Data collation was done through audits and included interviews with project managers and other stakeholders. On the basis of the findings and their analysis, a final report for the project was compiled, which included a clear strategic roadmap, processes, checklists and templates.
The team identified what IT functions were strategic and those that should be co-sourced. Allied implemented an IT co-sourcing strategy which conveyed several benefits, enabling delivery of sustainable reductions and increased control over the IT cost base.
This co-operative way of working meant that our client could supplement their in-house teams with the skills and resources they require for the business, without the loss of management control associated with outsourcing. The partnership provides strategic IT consulting services, benefits realisation, project management, change management and enterprise architecture services across the globe.
The alliance structure encourages flexibility through shared responsibilities in IT planning and delivery. The efficiencies that this project has delivered have had a positive impact on the availability of information and have resulted in significant administrative savings.
The company estimates that the successful integration effort reduced the amount of time spent on internal processes by 18% per IT employee.
Allied is building on the technology integration success to help identify and drive the cultural changes brought about by globalisation, which helps to cement the client's core values throughout the organisation. By aligning behaviours to core values, the client is in a better position to dominate the global digital media and entertainment market.