As IT and business leaders in a rapidly changing technology and skills landscape, we are all too familiar with the challenge of balancing cost and budget constraints with pressures to further transformation efforts and improve service delivery, speed, and user experience.
A key aspect of managing this challenge lies in identifying the opportunities to reduce run costs and fund growth and transformation efforts.
Comprehensive Data Analysis
Wavestone’s benchmarking advisory capability houses deep financial modeling and analysis expertise to help clients understand their true cost of service delivery—whether retained or outsourced—and how this cost compares to the market.
We benchmark costs across internal service delivery and vendor-contract pricing based on our proprietary database of retained cost assessments and sourcing advisory engagements. And we have the distinction of being the only benchmarker to staff highly tenured industry advisors on every engagement, as opposed to inexperienced spreadsheet analysts housed in research back offices.
Comprehensive Data Analysis
Our robust database of accurate and actionable data comes from hundreds of client engagements. The data is organized in processable components and consists of processes, key metrics, service descriptions, and SLAs.
Our contract database consists of software, hardware, and services vendors in the market. It also includes market pricing and discount levels, request for information (RFI) and request for proposal (RFP) responses, as well as differentiation, capabilities, and references.
Our optimization strategies consist of automation best practices, application portfolio rationalization methodologies, organization, and operating model frameworks, cloud migration approaches, and global sourcing strategies.
In addition to our discovery process and proprietary database, our findings are augmented with statistical intelligence from established sources.
Our client database includes performance, processes, budgets, actuals and invoices, service contracts, and transformation plans from our previous engagements.
Wavestone’s Expanded Benchmarking Methodology
Our benchmarking models are flexible to account for the uniqueness and practicalities inherent in every business. Each one is crafted from the ground up to give you visibility of the actual cost of services, not just a budget fly-over. They are designed to address what-if scenarios around changes in service profiles and the corresponding impact on cost structures.
There are six key considerations in our methodology:
- Adjusted for Volume and Quality
Normalized comparisons that factor differences in service quality, responsiveness, and consumption levels.
- Service Inclusions and Exclusions
Normalized comparisons that take into account the exact work elements that are in-scope.
- Inclusive of Financial and Technology Parameters
Cost of capital, depreciation, lease vs. buy, volume purchase agreements, the timing of the acquisition, the life cycle of equipment, and the currency of technology.
- Fully Burden Total Service Costs with Management
We conduct a broader Total Cost for Service Analysis that includes management, governance, and uniqueness in individuals and teams.
- Data Validated by Experience
Data validation supplemented with interviews. Other firms delegate benchmarking to the least experienced consultants who may not have the background to challenge the validity or completeness of data received by a client.
- Action-Oriented Findings
Too often, benchmarks only indicate high/low costs. We provide actionable results with each assessment.
Vice President, Growth
Sarthak is a seasoned executive with deep expertise in IT and business process transformation mandates, end-to-end sourcing programs, and outsourced contract optimization.
Read More His experience spans a broad range of industries including manufacturing, consumer products, and financial services. Before Wavestone, Sarthak served as the head of pricing advisory at Everest Group, where he established and led the pricing advisory practice, making it the fastest-growing division in the history of the firm. He was also management consultant at Ernst & Young, where he specialized in strategic sourcing, process optimization, and market-entry strategies. Sarthak holds an MBA in finance and systems from Symbiosis International University in Pune, and a bachelor’s degree in engineering from the R.V. College of Engineering in Bangalore
- Sarthak is a seasoned executive with deep expertise in IT and business process transformation mandates, end-to-end sourcing programs, and outsourced contract optimization.
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