Case Study: The Managed Services Turnaround
From Crisis to a 33% Cost Savings: A Case Study in Transforming IT Managed Services
Faced with a critically underperforming managed services contract and the threat of termination from a dissatisfied CIO, our team engineered a landmark turnaround. We delivered a 33% run-rate cost savings and transformed a hostile client relationship into a multi-year strategic partnership. Here’s the framework we used to make it happen.
The Framework
We deployed a disciplined three-phase approach: Diagnosis, Action, and Cultural Embedding. The core of the diagnostic phase was a "Four-Lens Analysis"—reviewing Governance, Technology, Value Streams, and Partners—which allowed us to pinpoint the true sources of inefficiency rather than just chasing symptoms.
The "Aha!" Moment
Our deep analysis revealed a fundamental lack of integration between the client's monitoring platform and ServiceNow. This "swivel-chair" administration, where engineers manually copied data, was a colossal source of hidden costs and protracted response times, proving the problem was a web of fractured processes.
The Results
The execution of our framework delivered a transformational turnaround, validated by hard numbers.
Achieved a 33% reduction in the total run-rate cost of the managed service.
Delivered a $1.2M annual reduction in software licensing.
Reduced Mean Time to Resolution (MTTR) by 60% while increasing First Call Resolution by 40%.
Plummeted change-related incidents by 75%.
Turned a termination threat into a proactive, multi-year contract renewal with an expanded scope of work.
Conclusion
This engagement is irrefutable proof that with a structured, value-focused framework, it is possible to transform an IT function from a mere cost center into a powerful engine for business success.
To explore the full, in-depth analysis of this engagement, you can download the complete case study here.