Management of outsourcing process for cost savings and efficiency gains

The Client, a global telecom operator, was in the process of developing its operating model from an execution oriented organization to a more governance oriented model. As part of this improvement program, the Client considered outsourcing all on site related activities for its fixed and mobile network in one of its markets. The scope included corrective and preventive site maintenance, implementation work as well as warehouse and logistics. These activities where originally performed through a mixture of own personnel, consultants and a fairly large number of contractors. Around 50 staff was affected.

Northstream:

– Built the RFQ including process- and interface definitions, SLA models, requirements around staff- and asset transfer and commercial/business model requirements

– Managed the internal processes around governance, IS/IT, HR and finance

– Evaluated and negotiate proposals from potential vendors

– Managed the transition process together with the selected vendor

– Managed the internal decision process towards steering groups, executive management and centralised head quarter functions.

The process was concluded on time and with all predefined key targets fulfilled including cost savings, efficiency gains, functional responsibility and staff transfer. The process itself has thereafter served as a role model for similar projects.