TRUSTED BY THE BEST – WE DELIVER RESULTS – TIME AFTER TIME.
We have a proven track record in delivering results. We deliver Sourcing and Operational Transformation Advisory services to Clients across industry, across geography, across the business functions, and across the whole Sourcing Lifecycle. Our Advisors have supported more than 100+ projects advising on more than £10 billion+ business Transformation Programmes, and for a range of Clients from household names to niche Challengers including;
Latest Case Studies
“Demand-driven IT Outsourcing.”
Client Challenge
- A leading FTSE100 company with a target to drive out double-digit savings in its IT ‘run’ operations and create a demand-driven service delivery model allowing the services to flex to meet requirements.
- The Client had a largely in-house IT infrastructure and End-User computing service with a fragmented delivery model. The services were suffering from under investment, and the IT infrastructure was in need of renewal and life extension.
Our Approach
- Worked with the Client team to develop a new Target Operational Model (TOM) for IT Infrastructure and End-User Computing incorporating a revised sourcing strategy.
- Led the sourcing process through RFI/beauty-parade, RFP and associated BAFO to final Service Provider selection.
- Led the commercial negotiation with the selected Service Provider(s).
- Developed new pricing models with the Service Provider that were demand driven for server provisioning and support, and data storage.
- As part of the solution the Client’s primary Data Centre site moved from its existing location to a new location with significantly improved facilities. The secondary DR Data Centre was also changed.
Outcomes
- Exceeded the business case target delivering 30%+ ‘run rate’ saving per annum.
- Programme removed the need for overdue Capital expenditure in renewal and life extension of specific assets.
- Improved service to the business users with clearer and more stringent Service Levels.
- Notably improved IT Business Continuity and Disaster Recovery arrangements.
- Achieved a strong outsourcing contract that drives the right behaviours in the Service Provider (and protects the Client).
“European Finance Hub Outsource.”
Client Challenge
- Transform its disparate international back office operations that had built up through multiple acquisitions across multiple geographies using different languages, processes, systems, tools, staff, and approach.
- Client sought to move to a more efficient, standardised, and centralised back office function that would deliver a step-change in cost reduction and a consistent high quality service across 15 European country entities.
- The Investment Management, Investment Accounting, and Treasury teams operated on a regional basis (3 regions) in a federated model with different approaches, processes, systems and reporting structures.
Our Approach
- Hillbrooke supported defining the sourcing and operational strategy and related solution, and led the sourcing transaction and contract negotiation process (supported by client in-house legal and limited external counsel).
- Created a pan-European Shared Service Centre / hub within the EU to provide middle and back office support to the individual country operations in their language (12 languages) with 300-400FTEs.
- An outsource approach was chosen for the build and delivery of the new Euro-hub in order to maximise savings, avoid capital outlay, get to market quicker, and leverage specialists skills.
- An Eastern European SSC location was chosen based on availability of language skills, cost, and to help minimise any potential regulatory issues (EU law applies) given some of the complexity and sensitivity of some middle and back office processes to be outsourced.
Outcomes
- Improved business case with the Client crediting Hillbrooke with delivering an additional 16% saving (US$10m+).
- Additional £150k net saving (Client est.) due to reduced need for external counsel in contract drafting & negotiation.
- Significantly stronger contract (commercial and legal perspective) compared with other Client 3rd party contracts.
- Faster transaction completion – met Client’s very aggressive timeline.
- The project has already delivered significant Back Office operational benefits with the SSC set to grow further.
“Outsourcing the Back Office.”
Client Challenge
- Client set a goal of achieving a sustainable step change in its operations cost base to make it more competitive.
- Following an enterprise wide strategic review Client chose to progress with a full IT Outsource (Infrastructure, End-User Services, Service Desk, Application Maintenance and Application Development), coupled with the Business Process Outsourcing of a number of group operations back office functions (slip admin., delegated underwriting).
Our Approach
- Provided end-to-end sourcing lifecycle support utilising best practice templates/tools.
- Reviewed the enterprise based sourcing strategy.
- Conducted a rapid feasibility study and built a ‘bottom up’ Business Case for back office functions (IT, F&A, Insurance processes).
- Conducted a rapid market beauty parade/ collaborative market test (CMT) process.
- Led the Outsource transaction process using ‘rapid collaborative’ OS process (BB,RFP, BAFO, Contract Negotiation.)
- Supported definition of the governance operating model and retained team organisation.
- Supported the successful implementation of the programme.
Outcomes
- Implementation of a new Target Operating Model (TOM) better aligned to the business requirements.
- An ITO and BPO combined outsource agreement (covering c20% company headcount).
- An outsource contract with committed savings of 30%+ (£20m+ over 5 years) for in-scope services with step change improvements in business flexibility along with specific targeted service improvement.
- Successful implementation of the TOM and transformational activity.
“Building a Shared Service Centre in China.”
Client Challenge
- China represents a massive growth opportunity but is being constrained by its middle and back office operations that are spread across local/regional offices lacking in scalability and have different approaches and standards.
- Create a unified back office that is flexible and scalable that can deliver a consistent service to the business front office and its customers.
Our Approach
- Brought together the middle and back office operations into a single Shared Service Centre supporting the whole of China initially and with the ability to add other Asian entities at a later date.
- Selected an outsourcing approach primarily for speed to market but also to provide clear accountability for process optimisation, committed cost reduction and ability to scale rapidly.
- Selected a BPO provider to establish the Shared Service Centre (SSC) at a low cost location within China.
- Ensured that the outsourcing agreement provided significant flexibility enabling a phased growth of the operation starting with initial c150FTEs but with the potential to grow to c500FTEs+ (or reduce as necessary).
- Delivered a business case that relies predominately on delivering economies of scale through both critical mass and process streamlining and standardisation, and to a minor extent on wage arbitrage (centralising in a lower cost city).
Outcomes
- The new BPO Service Provider partnership is aligned to the Client’s specific requirements in China and Asia.
- The negotiated outsource contract provides the Client with significant commercial and operational flexibility.
- An increase in the net programme benefits above and beyond the approved business case. (Derived by Hillbrooke).
- A fast track procurement and contract negotiation process leading to early implementation and benefit realisation.
- Benefits of the programme are already visible to the Client following first and second phase implementation.
“Transforming Investment Mgmt. Reporting.”
Client Challenge
- Transform the Investment Management function to become more effective, increase control, improve regulatory reporting efficiency, and reduce operational costs in support of its £16+ billion investment portfolio.
- The Investment Management, Investment Accounting, and Treasury teams operated on a regional basis (3 regions) in a federated model with different approaches, processes, systems and reporting structures.
Our Approach
- Hillbrooke supported the Client in the development of a new global target operating model and a roadmap that would lead to a fully centralised and controlled Investment Management function with local reporting.
- Led the sourcing process for the selection and implementation of the outsourcing of part of the Investment Accounting function coupled with implementation of a new Investment Accounting platform (SaaS) replacing the disparate regional systems enabling centralised control and reporting.
- Reviewed the credit ratings agency requirements and licencing.
- Supported the Client with the local regulators (including PRA) given the programme constituted a ‘material outsource’.
Outcomes
- Transformation programme scope driving a 35%+ reduction in operational costs.
- Business case Return on Investment (RoI) of circa 18 months (based on operational cost savings alone).
- Hillbrooke credited with delivering an additional £4.4m saving above Client expectations on the outsourced service.
- A strong outsource contract that protects the client‘s interests (commercial and legal aspects) – that has formed the model for future IT and outsourcing contract agreements.
“Improved Back-office Efficiency.”
Client Challenge
- In an increasingly competitive market, where broker margins and role are under increasing pressure, the Client looked to address their expenses through a middle and back office outsource.
- They established separate ITO and BPO programmes. The BPO programme focused on middle and back office processing that was non-customer facing with particular focus on underwriting support and F&A processes.
- The Client had already established a strong preference for one Service Provider, received an outline proposal, confirmed to them their selection, and were primed to start transition activity, however were struggling to get to contract and additional costs had arisen that had subsequently eroded their business case.
Our Approach
- Hillbrooke was brought in to apply best practice sourcing disciplines and manage the process to contract execution. We quickly assessed the challenges and identified the opportunities for improvement. Hillbrooke then led the commercial negotiation and contract negotiation activities (supported on the latter by client and legal counsel).
- We applied competitive tension, benchmarking data, and other commercial levers to obtain a significantly improved Service Provider proposal that led to a much improved programme Cost-Benefit Analysis (CBA).
- We significantly enhanced the initial contract draft produced by legal counsel through providing increased commercial and legal protections, including developing the key exhibits, notably improving the liability and IPR positions, addressing regulatory requirements, providing change mechanisms, developing the charging structure, defining the services, service levels, service credit regime, and a Parent Company Guarantee.
- We supported the Client in dealing with the regulators given the programme constituted a ‘material outsource’
Outcomes
- Achieved a 39% reduction in FTE costs (for same scope) compared with original Service Provider proposal.
- Delivered an increase of £4m+ benefit above approved business case.
- Provided a final contract that significantly reduced the client risk, was regulatory compliant and maximised the benefits.
“Developing a Business-led Sourcing Strategy.”
Client Challenge
- The Client’s Sourcing landscape had evolved over 20+ years based on predominately tactical initiatives led by individual country operations or functions. This had led to an inefficient and complicated ‘patchwork’ of Outsourcing, Shared Services, and in country/function provision.
- The Client sought to drive consistency in the delivery and performance of service (internally and externally), and deliver step-change cost reduction across its 20+ country operations.
Our Approach
- We developed a holistic group-led Sourcing Strategy taking both a ‘top-down’ and ‘bottom-up’ approach.
- Following an in-depth data gathering exercise, significant analysis was undertaken to determine what worked/needed to be improved.
- We developed a ‘make-buy’ decision framework that was then applied to each function, service, and process.
- The Sourcing Strategy was designed to leverage the relative benefits of Outsourcing, Shared Services, hybrid, and in-house solutions depending on a range of considerations with each process evaluated accordingly.
- A market analysis was performed to confirm market capability in alignment with the proposed strategy.
- To ensure the success of the Strategy, significant effort was expended on working closely with the individual business units/country operations, understanding any unique operating conditions, and securing buy-in from each of them.
Outcomes
- A holistic Sourcing Strategy that utilised Outsourcing, Shared Services, and inhouse country/BU provision leveraging the relative merits according to what was appropriate to the service benefit.
- The final Strategy reflected a £250m+ benefit over a 7 year period with full implementation driving investment in Shared Services capability and Outsourcing.
- Detailed Solution work was initiated and plans developed to implement the Strategy – providing a roadmap to move services/processes and current Sourcing arrangements to the new Target Operating Model over an 20 month timeline.
- The creation of the holistic Sourcing Strategy has ensured that future decision-making is aligned accordingly (unless a country/BU secures a specific derogation where it could be justified.)
“Delivering £100m in back-office savings.”
Client Challenge
- Business imperative to achieve a sustainable step change in its operations cost base to make it more competitive.
- A need to transform its disparate international back office operations spanning multiple geographies and using different languages, processes, systems, tools, staff, and approach.
- Move to a more efficient, standardised, and centralised back office function that would deliver a step-change in cost reduction and a consistent high quality service across its Global operations entities.
Our Approach
- Hillbrooke informed the sourcing strategy enabling the decoupling of IT and BP outsourcing projects to provide maximum flexibility and independent acceleration, thereby enabling rapid realisation of benefits within aggressive timeframes.
- An adapted RFP process was deployed (Request for Solution) that enabled rapid shortlisting of candidate suppliers, accelerated down-select decisions within a robust, structured and controlled evaluation framework, and a fast and efficient contract negotiation that maximised the benefit of competitive pressure to satisfactorily address material issues prior to exclusivity and contract finalisation/signature.
- Hillbrooke led the Outsource Transaction ensuring all key milestones were achieved within aggressive targets, and delivered high quality and robust outputs that enabled executive decision-making which was fully endorsed and supported by a wide and diverse stakeholder group.
- Beyond contract signature, Hillbrooke supported the implementation of the contract and the enabling of realisation of benefits through shaping and implementing Sourcing Management & Governance organisational constructs to deliver processes for Relationship, Financial, Risk & Compliance, Contract, Change and Service Delivery/Performance Management functions, whilst retaining an ongoing trusted advisor role in the strategic/executive governance forums.
Outcomes
- Business Transformation Outsource (BTO) project achieved in just 6 months – from Request For Solution (RFS) to contract signature.
- Close to 25% of the organisation addressed through the BTO, with committed operational savings in excess of 55% saving, representing more than £100m over 5 years period.
- Process efficiencies gained through optimisation, standardisation, automation and elimination, with further savings expected through Robotic Process Automation (RPA) and process transformation in both the Service Proivder Offshore service and Client retained organisation.
“Driving efficiency in Finance & Accounting Outsource (FAO).”
Client Challenge
- Client needed to transform and modernise Services that had been with incumbent Service Provider for more than 10 years.
- Inherited imprecise and confused data set, commercial model and poorly-understood Services across 12 business units / geographies.
- Set goal of improving financial return and gaining commitment for solution from all business units both individually and collectively.
Our Approach
- Provided end-to-end Sourcing Lifecycle support utilising best practice templates/tools.
- Conducted a full, competitive Request for Services process.
- Led the Outsource transaction process using ‘rapid collaborative’ Outsourcing processes (BP, RFP, BAFO, Contract Negotiation).
- Squarely put transformation capability and commitment at the centre of the programme incorporating BPR, RPA and AI.
- Achieved sign-off from all 12 business units with agreement of Local Service Agreements (LSA).
- Managed exit and transition from incumbent Service Provider.
- Supported definition of the governance operating model and retained team organisation.
Outcomes
- Improved business case with Client crediting Hillbrooke with delivering a committed FTE saving of over 30%.
- Significant effort reduction through re-engineered processes and implementation of RPA. Enhanced Analytics investments committed.
- Significantly stronger contract (commercial and legal perspective).
- Methodical transition completion from incumbent.
- Transparency delivered for business units needing to manage costs and training on the critical “levers” with built in flexibility for future changes to the operating model.
“Procure-to-Pay (P2P) Outsource and Optimisation.”
Client Challenge
- Client sourcing environment had evolved over time on a tactical basis and was complicated, cumbersome, with many hand-offs/interfaces. They therefore wanted to simplify and reduce the number of Service Providers in the Finance and Procurement space.
- In the Procure-to-Pay (P2P) function the commercial model was confused, with services poorly defined and poorly understood, and inconsistently provided across the 15 Business Units/geographies.
- Client set a goal of delivering an aggressive financial targets and improving flexibility for future change including to accommodate a significant re-platforming of operations.
Our Approach
- Redefined the programme and resourcing structure.
- Realigned the objectives and approach with preferred Supplier.
- Renegotiated all contract schedules with preferred Supplier.
- Re-engineered the critical processes for inclusion in Services and commercial constructs with forensic financial / service evaluation with 15 business units and the Supplier.
- Sign off from all 15 business units with agreement of Local Services Agreements (LSAs).
- Managed exit and transition from incumbent Supplier.
- Supported definition of the governance operating model and retained team organisation.
Outcomes
- Improved business case with the Client crediting Hillbrooke with delivering an additional 30% saving (US$10m+) where the Client initially believed no incremental savings were likely.
- Significant effort reduction through re-engineered processes up front in the contract with additional committed improvements throughout term of the deal.
- Significantly stronger contract (commercial and legal perspective) and rapid transition completion from the incumbent.
- Transparency delivered for business units needing to manage costs and training on the critical “levers” with built in flexibility for future changes to the operating model.