IT Contract Modernization for a Leading Financial Institution
Modernization of an IT contract worth more than USD 100M to improve governance, service levels and financial sustainability — with an impact on EBITDA from the first year of operation.
- Year 1 impact on EBITDA
- 0 active capital leaks
- USD 100M+ contract modernized
- 100% SLA control
Case diagnosis
Situation, intervention and results
Where the client started, what we did and what changed.
Situation and challenges
Situation
- Operational rigidity: A critical need to rethink the outsourcing contract because of weak SLAs and collaboration.
- Service friction: Inefficiencies in the operating model that limited technology scalability.
- Financial uncertainty: A pricing model with unfavorable variable extra costs — the vendor was billing for services already covered by the base fee.
Strategic intervention
Intervention
- Historical control analysis: A detailed audit of pain points and compliance with the current contract — identifying gray areas and price arbitrage.
- Strategic tender (RFP): Design of a new contracting model based on technical valuation and an agile transition.
- Governance and negotiation: A governance model and a competitive pricing architecture put in place to control SLAs and cost variability.
Results and impact
Result
- Cost optimization: A competitive, favorable pricing strategy from the first year on a contract worth more than USD 100M.
- Operational excellence: Greater efficiency and service quality through modernized infrastructure.
- Guaranteed scalability: Improved capacity to support the bank’s growth with a long-term strategic partner.
Methodology applied
How we did it
Transition to a modernized service with visible savings and full SLA control.
Audit and leakage control
We ran an exhaustive analysis of the technical and financial compliance of the active contract and found an unjustified increase in spend caused by operational ambiguities. We identified the use of extra services through which the vendor billed fixed costs already covered by the base fee. We neutralized the price arbitrage and stopped the capital leakage, restoring the economic balance of the agreement.
Negotiation and pricing structure
We put in place a governance model and a competitive pricing architecture that ensured full control over SLAs and cost variability — removing the gray areas that allowed unjustified extra charges.
Agile strategic sourcing
We designed and led a collaborative sourcing process that significantly cut cycle times and secured top-tier partners. The process was run with an agile methodology to minimize the time of exposure to the risk of the previous contract.
Impact on EBITDA
We delivered favorable cost optimization from the first year, securing business scalability and infrastructure modernization through a long-term strategic partnership with a direct, measurable impact on the bank’s EBITDA.
Quantified results
Measurable impact in numbers
The bank moved from a contract with active capital leaks to a governed model with a direct impact on EBITDA.
- Year 1 Impact on EBITDA Favorable cost optimization from the first year on a contract worth more than USD 100M.
- 0 Active capital leaks Billing for services already covered by the base fee was stopped and the price arbitrage neutralized.
- 100% SLA control A governance model and a competitive pricing architecture to control SLAs and cost variability.
Service applied in this case
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