Company will save $3M over 3 years

At the core of this initiative was a quest to more efficiently manage technology spend and the company’s IT asset portfolio. The company anticipated a slowdown in its growth and marketing activities as the economic downturn continued. However, they knew that there would be a period of account growth following the downturn and any reductions in infrastructure had to be temporary. Without deeply understanding how to manage the spend and flexibility of its IT operations, the Client risked wasting costs on unused technology as well as risked the ability to keep up with the rebound in demand as market conditions increased.

In response to these risks, the Client turned to CMG’s group Member to evaluate its vendor portfolio, develop an IT savings roadmap and create vendor management strategies that fostered flexibility. Additionally, CMG’s Group Member established transaction-based pricing models with several IT vendors, reviewed support and maintenance agreements to identify areas of excess spend, and renegotiated maintenance agreements with vendors to support the infrastructure adjustments.

The Client’s investment in CMG’s Group Member is delivering overwhelming financial and customer-facing results. From a financial perspective, the Client’s initiative will yield more than $1 million in IT savings for 2008. Over the course of the next three years, this initiative will save the company more than $3 million.

Just as importantly, the flexibility afforded by the Group Member’s recommended infrastructure changes will keep operations running smoothly through the short and long-term flux in economic conditions. This will enable the Client to protect its customer service levels and retain customer loyalty during the market downturn.