case study: Cost reduction

BACKGROUND

A leading leisure and entertainment company in an industry that is rapidly consolidating and globalising, was looking for significant IT cost reduction.

The organisation was suffering from:

High infrastructure costs resulting from expansion /acquisition & fragmented architecture
Complexity of the infrastructure was increasing the cost of application delivery and slowing the speed of development and deployment

reveal group was approached to review the current state and identify the cost saving potential.

OUR ROLE

The approach to the cost reduction project was to:

Quantifying the baseline of IT Infrastructure
Identifying current cost saving initiatives and their implementation status
Identify improvement opportunities
Developing a financial business case and implementation plan for agreed projects
Calling out quick win opportunities

RESULT

reveal group identified considerable cost reduction potential:

Identified a cost saving of over 20% of the annual baseline
Clearly defined services and service levels
Developed a variable cost model where services provided could be charged on a "usage basis"
Identified an innovative architectural options to achieve an improved service proposition
Structured a program to deliver optimised sourcing

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