IT Health Check
Objectives & Project Background
A UK Asset Manager with operations in the Far East, the US, the Channel Islands and Dublin needed to cut costs throughout the organisation and had recognised that IT costs had risen out of control over the last few years. Parkwell were asked to gain an understanding of the cost drivers in IT and understand which costs could be reduced without greatly impacting on the level of service provided by IT.
- Sizeable savings arising from a restructuring of IT without greatly impacting on the service provided by IT.
- An understanding by the users of IT services of their true costs.
The scope included IT worldwide. The approach taken was as follows:
- Reviewed the current position in respect of people, systems and processes worldwide.
- Specific attention was paid to the IT budgeting processes, apparent duplication of services across the various offices, duplication of systems, recharging to the business and the methods for initiating projects. Attention was also give to the post-implementation review and post-project benefits realisation processes. From this review, a number of cost drivers emerged.
- The IT costs of a number of competitor organisations were also reviewed.
- A recommendation report as produced which included IT budgets for the next 3 years, a high level IT strategy and an action plan for the implementation of the recommendations.
The project team reported to a steering committee chaired by the Chief Operating Officer.
The deliverables were as follows:
- A document setting out the current situation.
- A list of IT accounting policies and practices.
- A comparison of IT costs with other similar organisations.
- A recommendation report.
- A detailed plan for the implementation of the recommendations and a project initiation document.
The project team’s detailed plan for the reduction of IT costs was accepted by the steering committee and subsequently the main board.