As one of the largest Healthcare Insurance providers in the U.S., our client had successfully served the market for over 75 years. However, with a legacy of exceptional service also came a legacy of outdated systems and clunky processes that accrued heavy technical debt. Tasked with reducing wastage by a significant amount, the client sought out Windsor Group to explore outsourcing solutions that would address their unique needs.
Although the company supported a large complex set of IT platforms and services, their IT function constantly received strong results from customer satisfaction surveys for the support services they provided for different systems and platforms. The company, however, was being challenged to considerably reduce operational costs while continuing to provide high levels of customer satisfaction.
There were a number of external challenges impacting their sourcing decision, including regulatory issues associated with local, state, and federal governments, such as the Federal Government’s Patient Protection and Affordable Care Act (PPACA). Their legacy IT systems needed constant refresh and maintenance to keep up with these regulations. Furthermore, the company was preparing to compete on the renewal of their State business, so in addition to driving down expenses, they also required a more flexible, usage-based IT services model.
Windsor Group worked collaboratively with the company to baseline their current IT infrastructure operations, including mainframes, midrange, servers, help desk, and desktop service.
Our evaluation of the client’s IT environment showed that while their existing operation costs were comparable to third party suppliers, the company was also operating significant project support services that were costly. Windsor Group identified the key service areas that offered opportunities for cost reduction and service improvements and helped the client evaluate ideal solutions and price structures within those areas. Following our initial presentation of potential solutions, we worked closely with the client to hone in and customize a solution that met their specific needs.
Through our proven sourcing approach, Windsor Group was able to recommend a deal-based acquisition of the client’s data center, including an asset transfer of resources and technology. This solution kept IT resources within the state, meeting critical state and regulatory constraints. The agreement included ownership, management, and support of functions such as mainframes, servers, PCs, telephone systems, networks, and technology security.
With such an agreement in place, the client not only drastically improved their discovery recovery preparedness, they also achieved a 20% decrease in operating expenses. Transforming to a more flexible IT service delivery model positioned the client for ongoing success as they faced new opportunities in the ever-evolving sector.
Insurance organizations are constantly facing new challenges that are compounded by stringent regulatory requirements. From an IT services perspective, relying on internal resources to manage and carry out these key services can be labor-intensive. Shifting responsibilities to external service providers, however, gives Insurance organizations greater power to focus on the strategic initiatives that drive their business forward while still delivering the same standards of service, if not better.