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Billing+ - programme management of a global outsource at BT

  • Overview
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    BT's Billing+ programme was established to realise cost-savings and improve billing effectiveness by outsourcing billing operations and the associated IT support for 20 countries. Moorhouse worked in a combined client-consultant team to deliver the individual country contracts for the outsourcing programme and to manage a stable transition to the supplier. We defined seven separate projects within the programme and established a single Programme Management Office (PMO) to coordinate the projects. Our methodology covered the project lifecycle from business case validation to the stabilisation of the supplier-run service. Billing+ is universally recognised within BT as a highly successful programme. Original objectives were met despite being viewed as wholly unattainable when we started. All Country Agreements have been signed and Billing+ has already delivered over £35m of tangible benefits, with more to come, and halved the cost of billing operations in BT Global Services.

    We won the 'Management Association International Award 2011' for our role in BT's Billing+ project.

  • Our client's challenge
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    BT's acquisition strategy had developed complex, costly support functions across its global entities. The Billing+ programme was established to realise cost-savings and improve billing effectiveness by outsourcing billing operations and the associated IT support for 20 countries to TechMahindra.

  • Our response
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    Moorhouse worked in a combined client-consultant team to deliver the individual country contracts for the outsourcing and to manage a stable transition to the supplier. Key features of the approach included:

    • Defining seven separate projects within the programme based on geography and phasing them according to complexity, risk and projected benefits
    • Establishing a global Programme Management Office, based in the UK, to coordinate efforts across the geographies and standardise methods and tools
    • Implementing a robust governance structure allowing rapid decision making and providing a common point of liaison, despite cultural and geographic differences
    • Defining a five-phase, scalable methodology for each region to follow, covering the project lifecycle from business case validation to stabilisation of the supplier-run service
    • Helping BT to manage the supplier relationship more effectively, for example by resolving issues as a partnership rather than resorting immediately to the contract
       

    Providing real delivery support wherever and however required to meet the key programme milestones and to avoid incurring contractual penalties

  • The value to our client
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    Billing+ is universally recognised within BT as a highly successful programme. Original objectives were met despite being viewed as wholly unattainable when the Moorhouse team started. All Country Agreements have been signed and the programme has already delivered over £35m of tangible benefits, with more to come, and halved the cost of billing operations in BT Global Services. Further savings are projected for the future.

    Measurable results include:

    • Billing backlog of £15m cleared from BT Italy's operations;
    • £85m of measurable benefits over the contract duration related to rectification of billing errors
    • £9m of savings realised over the contract duration for improved speed of debt collection
    • Reduction in resource costs of £3.4m
    • Substantially fewer customer complaints/issues due to more accurate and timely billing
    • Operational efficiencies and cross-department working due to Tech Mahindra's implementation of over 150 process improvement changes
       

    Perhaps most importantly, the programme was delivered without any negative impact on billing or service performance during programme execution.

    Moorhouse were voted winners of the 'Management Consultancies Association International Award 2011' for their role in BT's Billing+ project.

     

     

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Testimonial

"Moorhouse provided real leadership and integrity, holding the BT team to account for programme planning and delivery. They are very team orientated and accept real responsibility;  definitely value for money."

Milestone Programme Director & Portfolio & Service Design Complex Contracts Delivery Director, BT

Delivering successful cost reduction

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