A global technology company was experiencing rising costs and slower-than-expected growth, putting pressure on profitability despite strong innovation capabilities.
They needed to reduce their cost base by 40%, at pace, while protecting core innovation and enabling future growth. The objective was to design a fit-for-future operating model, including establishment of a nearshore delivery capability, improve cost efficiency, and return the business to sustainable profitability.
What was the challenge?
Operating in a highly competitive market, the organisation needed an external partner to collaboratively shape their operating model, and identify the levers required to reduce a high operational cost base.
Previous cost initiatives had been incremental, with limited long-term sustainable impact to profitability, and there was no consistent framework to support decision-making across the executive group.
They required support to:
- Build a clear, bottom-up view of the cost base
- Identify and prioritise cost reduction opportunities
- Define a future operating model aligned to strategy
- Enable leadership to make informed trade-offs
- Deliver change at pace without disrupting critical capabilities
How did we help?
We delivered a structured, evidence-led approach across three phases:
Phase 1: Cost baseline and discovery
- Built a bottom-up cost model to create full cost transparency
- Mapped core workflows to identify inefficiencies and duplication
- Established a clear baseline for savings opportunities
Phase 2: Target operating model and scenario design
- Defined design principles aligned to strategic priorities
- Developed a fit-for-future Target Operating Model
- Enabled scenario modelling to support trade-off decisions
- Created a prioritised cost reduction framework
Phase 3: Implementation and Change Enablement
- Developed a delivery roadmap with clear work packages and ownership
- Established a nearshore service centre to support scalable, cost-efficient delivery
- Designed a targeted change and communications approach
- Supported leadership alignment and decision-making
- Enabled benefit tracking and implementation planning
What was the impact?
- Cost reduction: Established a clear, deliverable pathway to significantly reduce operating cost by 40%
- Profitability: Enabled a shift towards sustainable, in-year positive financial performance
- Strategic alignment: Delivered a future operating model aligned to growth and innovation priorities
- Decision-making: Improved leadership confidence through robust cost and scenario modelling
- Delivery confidence: Created a clear roadmap to accelerate implementation and realise benefits
