A Middle Eastern telecom operator requested support to develop a shared-services transformation to support the growing business requirements
The client, a challenger operator, had experienced high growth in the previous five to seven years, which had reshaped the client‘s business completely.
Operating models in the operations area (network, IT, product engineering [PE] and customer operations) and respective outsourcing contracts were not able to adapt to evolving business requirements and provide required performance and efficiency.
Following a comprehensive assessment of the current operating model and a review of contracts, Arthur D. Little conducted an extensive benchmarking study for operating-model and contract design. Based on identified improvement areas, operating and sourcing models were completely redesigned. Arthur D. Little further supported the client through renegotiations and tender processes.
A comprehensive transformation program was created to implement the changes throughout 18-20 months.
The client implemented the recommendations and all outsourcing contracts were renegotiated.
As a result, the client achieved:
- 18 – 30% savings in customer operations costs
- 20 – 25% savings in network operations costs
- 20 – 25% improvement in time-to-market for IT