Our client, a critical provider of energy transmission and metering services in the UK, was being divested from its former parent company to an acquiring entity. With limited internal resources, our client needed support across a broad range of sourcing and commercial activities to establish the stand-alone IT services it would need to exit transition service agreements (TSAs) on time.
- Outcome 1: Our client is on track to exit the transition services agreement (TSA) on time and to budget
- Outcome 2: We sourced and onboarded a number of technology services, networking, software and cyber-security partners for the standalone entity
- Outcome 3: We negotiated over 100 enterprise agreements and contracts
The challenge
Navigating large-scale divestments and carve outs is highly complex and focus should be maintained continuously on avoiding onerous penalties that will occur if the exit is not completed on time. Companies undergoing these transitions are under great pressure to not only manage and mitigate the risks associated effectively, but also to expedite the overall process as much as possible in order to accelerate time-to-value. With limited resources and lacking internal expertise and experience on how to navigate the procurement involved in these transitions, our team of experts were able to inject pace into our client’s sourcing processes, maintain adherence to client and regularity requirements and deliver outcomes significantly earlier than would have been possible their in-house resources.
Faced with the challenge of delivering a successful carve out procurement strategy but with limited resources, our client sought our team’s support in driving the wide range of sourcing and commercial activities required to source partners that would establish the stand-alone IT services it would require post-divestment.
The approach
We first designed a comprehensive sourcing programme across the multiple areas of IT services that were in scope within the TSA, leveraging our specialist sourcing and technology expertise. Following this, we mobilised and managed the end-to-end programme and its multiple workstreams. We worked closely with our client throughout, effectively delivering regular stakeholder updates throughout the process to ensure full alignment and proactive escalation and resolution of risks and issues. We delivered competitive sourcing solutions across multiple areas, negotiating deals with large software vendors such as Microsoft, SAP and Salesforce, contracting a brand-new service management and end user services provider, sourcing a new critical national infrastructure provider, strategic partners for ServiceNow and cyber security operations centre (CSOC) services.
The value delivered
With our hands-on support and commercial expertise, our client has been able to move towards their TSA exit on time and on budget. Most critically, they have been left with sustainable sourcing outcomes which are aligned to the size and shape of the divested entity and robust components of their new IT architecture. In turn, this lowers the risk profile for our client and their stakeholders.