A Second Phase of Cost Savings
A global finance organization partnered with Point B to address rising marketing vendor costs, outdated technology, and challenges brought on by fragmented talent across global locations. With a modernized strategy and roadmap, their leaders are positioned to achieve a 30% increase in capacity and $10.4M+ in contractual savings in the coming years, fueled by AI and automation.
Eager to expand improvements beyond its marketing operations department, our team partnered with leaders to completely transform Marketing by leveraging modern technology and building a consolidated, nearshore vendor strategy.
Exploring Cross-Functional Opportunities
Our customer relied heavily on senior resources in the US and India with vendor contracts that were misaligned with work requirements, leading to overspending. In addition, the work done in India relied on complex manual processes. This presented a significant challenge due to the steadily increasing price of work in the country since the pandemic.
Overdependence on a single vendor further increased costs and eliminated opportunities for competition to drive a culture of continuous improvement. Finally, silos prevented business units from collaborating to ensure visibility and achieve better outcomes across existing contracts.
A nearshore solution leveraging multiple vendors would improve service quality, lower costs, and reduce dependency on single suppliers within the organization’s digital, marketing, D&A, and IT departments. Working in shared time zones, nearshore partners would ensure workflow continuity and minimize disruption for U.S.-based teams. In addition, a more modern technology footprint could also streamline the ways in which work is executed.
Approach
Using cross-industry benchmarks and developing business process and information technology outsourcing partnerships with nearshore and offshore organizations, our team assessed opportunities for this customer to do more with less along its multi-year journey to simplify, modernize, and reduce costs.
This assessment included:
- Cross-Industry Best Practices: Our team highlighted innovative approaches in marketing organizations within financial services and other industries.
- Interdisciplinary Strategy: We applied insights from Data & Analytics, IT, and Digital sectors to enhance strategic planning.
- Talent Evaluation: An assessment of nearshore, offshore, and onshore talent pools to optimize resource use.
- Vendor Alignment: Matching vendors to work types and consolidating contracts for optimal capabilities.
- Automation Adoption: We used industry benchmarks for automating work types to boost efficiency.
- Human Capital Planning: Our team created a strategic plan for workforce deployment across different locations.
- OpEx Reduction: We implemented modern technology solutions to cut operational expenses.
- Nearshore Talent Vendors: We partnered to select vendors aligned with strategic and operational objectives.
- Pilot Program: Our team tested a nearshore vendor program for viability and strategy validation.
- Operational Readiness: We enhanced readiness for a smooth transition to nearshore operations.
- Dual Vendor Strategy: We employed a dual vendor approach to improve quality and reduce costs.
Nearshore digital agencies bridged the gap between marketing, IT, and D&A functions to service a broader range of role requirements. Instead of targeting purely operational roles, this customer could expand its strategy to nearshore complex, project-based work. By coordinating projects within the same time zone, they would benefit from seamless communication, supporting work where timely back-and-forth is crucial.
Outcomes
Our team's thorough analysis of vendor contracts and workflows within marketing, IT, and Data & Analytics enabled our customer to effectively target "low-hanging fruit" capabilities for the initial pilot. By highlighting the use of advanced technologies, the organization identified modern, efficient ways of operating. Selecting the right vendor candidates, defining specific work types, and establishing consistent KPIs for measurement empowered leaders to build momentum and confidence, paving the way for future sourcing transformation.
Project Results
Streamlined vendor onboarding
through increased operational readiness and knowledge management
Reduced dependency
on single suppliers, leading to more leverage in contract negotiations
Cost savings
projected at $36 million over 3 years thanks to a reimagined nearshore strategy and modern tech footprint
Future cost reduction
through a bidding strategy to establish negotiating power and foster competition among vendors
With the right roadmap in place, our customer is positioned to scale these efforts beyond the initial pilot, impacting departments across their organization for even greater savings over time.
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