At this European blue chip company, the integration of several business units into one division with 7bn € in sales and 22.000 employees was still under way within the area of business services. Within the IT services the situation was even more fragmented. Services were partly still provided on site, while on corporate level global consolidation was already under discussion. Whoever has already experienced this kind of consolidation into an 'IT Shared Service' knows, that transforming from decentral site responsibility to central coporate responsibility in one step across various hierarchical levels, countries and divisions is more than just a risky act.
In this controversial and risky environment, dp supported the client with the decision to a first consoilidation step on divisional level across 5 countries. Up to now, this is the most successfully implemented IT Shared Service with sustained value creation for this large multinational company.
This transformation was not only about consolidation. Various new skills were developed, quality of service was increased, the formerly seperated IT units were restructured across 4 countries and merged into one single Shared Service Center with one Strategy, one Governance, one Organization, one Service Catalog, one Process World and one Supplier Management.
Also the IT business system was enhanced by new skills such as a state-of-the-art controlling system, SLA based re-charging into the business units and an effective contract and supplier management system. Some services of the organization are even marketed in large system integration projects within the primary business to the end customer of this company.
More than 18 mio € annually recurrent savings could be realized and in addition, one time savings were used for refinancing the transformation; obviously an investment which directly paid back and improved profitability for the upcoming years.