Reducing Costs and Modernizing Legacy IT to Achieve $5M in Annual Savings
For decades, our client, a giant in the supplemental insurance space, has been a byword for reliability. That legacy, however, carried a high price: an aging IT infrastructure consuming a significant portion of the budget.
They were caught in a classic bind. They needed to fund new digital initiatives for a competitive advantage while continuing to support core systems. This was more than a budgeting challenge; it limited strategic flexibility. Windsor Group was brought in to identify a solution.
The Challenge
The client operated a bi-modal IT environment, supporting traditional systems essential for daily policy administration and claims processing while investing in digital initiatives. Capital investment focused on innovation, but legacy systems still needed regular updates for infrastructure, security, and compliance. This created a strategic bottleneck: funding new projects meant diverting resources from systems that run the business.
The client needed a way to lower the total cost of ownership for their traditional IT operations, freeing capital for growth-focused digital projects while maintaining uninterrupted service and reliability for customers.
Engagement
Windsor Group worked closely with the client’s IT leadership to develop a detailed baseline of existing IT service delivery and costs. We mapped the full legacy environment, including infrastructure, applications, and support processes, to create an accurate picture of current operations.
Using this baseline, we identified functions and services suitable for a modernized, outsourced solution. We then managed a structured sourcing process with multiple top-tier service providers, facilitating proposal development and guiding vendors to meet the client’s requirements for cost efficiency, reliability, and seamless transition.
The Result
Through Windsor Group’s sourcing approach, the $20B insurer selected a tailored solution aligned with operational and financial goals. The client realized over $5M in hard savings in the first year.
This allowed them to reallocate capital into digital initiatives, maintaining momentum on projects that improve customer experience and drive growth. Legacy systems remained robust and modernized under a specialized partner, reducing risk and supporting long-term operational stability.
Insights
Insurance providers often face the challenge of balancing legacy operations with funding innovation. Shifting non-differentiating IT functions to a specialized partner reduces costs, provides access to expertise, and allows organizations to focus on high-priority projects. This approach strengthens operational stability and supports financial efficiency for future growth. To learn how Windsor Group can help your organization optimize IT spend and advance strategic initiatives, connect with us today at windzr.com/contact-us.