ICT Consolidation at BT
- OverviewRead more
BT's 'Milestone' programme was designed to shed 500 of their 650 legacy systems, consolidate over 100 networks to under 10, reduce 25 data centres to 4, and outsource mission critical, non-core operations. This seven year programme was valued at £1.1bn, BT knew they lacked the in-house programme and project management (PPM) capability for a programme of this size and so employed Moorhouse's PPM expertise. Our immediate priority was to enhance management control by refining and supporting the over-arching governance 'umbrella'. Working in a dynamic environment, our pragmatic approach focused on critical activity to strengthen BT's planning, reporting, risk management and change control capabilities. In parallel, we built a framework of repeatable, scalable, best practice documentation and guidance to support future outsourcing initiatives. Our work delivered several key and measurable benefits including; network operations savings of £247m, rationalisation of legacy systems by 72% that reduced management costs by 60%, and a harmonised 'next generation' product set based on leading-edge technologies driving user adoption to 90%.
- Our client's challengeRead more
Like many organisations that have expanded by acquisition, BT had a compelling need to reduce complexity. A 'programme of programmes' designed to shed 500 of their 650 legacy systems, consolidate over 100 networks to under 10, reduce 25 data centres to 4, and outsource mission critical, non-core operations to a small, carefully chosen set of strategic partners. The total contract value of this seven year programme was £1.1bn. BT knew that they lacked the in-house programme and project management (PPM) capability for programmes of this size.
- Our responsesRead more
Contract negotiations with potential suppliers were already under way for three outsourcing programmes; all were initiated without common processes for programme management, governance, reporting or benefits realisation management. Our immediate priority was to enhance management control by refining and supporting the over-arching governance 'umbrella'. This enabled us to revisit existing business cases so that they were fit to support a robust benefits realisation framework. This strengthened BTs planning, reporting, risk management and change control capabilities.
The programme built a framework of repeatable, scalable, best practice documentation and guidance accessed through a web-based repository. This captured current best practice and supported future outsourcing initiatives in BT by providing standard, adaptable processes for procurement strategy definition, vendor selection, contract definition, service transition and performance assurance of the supplier's transformation obligations.
All this was achieved in a dynamic operating environment where the imposition of bureaucratic, dogmatic, or over-engineered processes would have been counter-productive. Our pragmatic approach enabled programmes to focus on critical activity, without sacrificing agility.
- The value to our clientRead more
- We made sense of the complexity inherent within the multidimensional interdependencies between networks, systems, products and impacted customer contracts. This helped to lower costs and eliminate nugatory work.
- Post contract we provided delivery assurance throughout the transition stage for each programme, providing expert oversight of the transformation activities undertaken by the out-source service partners.
- Overall our experience, expertise and systematic approach to delivering complex outsourcing programmes have significantly de-risked BT's strategic imperative to pass the 'legacy challenge' to third-party providers. BT can focus on the future in the knowledge that others are taking care of legacy technology in a safe and cost effective way.
Key Benefits delivered
- Partner investment of £167m, accelerating the transition to 21CN architecture.
- Network operations savings of £247m.
- Legacy systems rationalised by 72%, reducing management costs by 60%.
- 2% improvement in Right First Time targets.
- A harmonised 'next generation' product set based on leading-edge technologies driving user adoption to 90%.
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