The Power of Outsourcing:
£25m Savings Delivered
for a Leading Investment
Company
Cost Savings
Delivered a £25m reduction
in expenditure over 5 years,
a 20% reduction on the
proceeding operating cost.
Sustainable Partnerships
Embedded collaboration
and innovation into contracts,
ensuring long-term savings.
Service Protected
Service Protected: All twelve
of the critical service metrics
were maintained or improved.
Refined Focus
Enhanced understanding of the
client’s unique selling propositions
(USPs) and resource allocation.
Client Overview
The client, a multinational investment company, needed to reduce operating costs, while preserving its reputation for exceptional service.
Problem Statement
Faced with a multi-million-pound cost challenge and tight deadlines; the client needed to identify savings opportunities without compromising service quality.
Approach
Cross 8 identified opportunities to outsource non-customer-facing processes, reducing costs while retaining control of dierentiating operations. Using our outsourcing framework, we implemented a five-stage process which allowed us to move at pace to meet the client’s ambitious goals. Based on our experience of similar arrangements we focused on mitigating some key potential pitfalls:
1. Underestimating the real cost
Our financial assessment focused on the whole of life cost associated with the deal, not just the headline day one price.
2. Pitch vs Reality gaps
It is critical to delve deeply into the real capability of prospective suppliers. Using a combination of sources, we built a picture of each prospective partners ability to deliver that went much deeper than their pitch.
3. A lack of partnership
Our focus was on setting the relationship up in a way that makes it financially and operationally sustainable for both parties and naturally aligns goals so both parties gain in the same circumstances.
Challenges
Key challenges included aligning stakeholders, balancing supplier innovation with capability, and meeting tight timelines which required us to select a partner and transition the service in less than 9 months.
Conclusion
This project highlights Cross 8’s ability to deliver cost-saving solutions for multinational firms while maintaining service quality.
Our structured, innovative approach enabled the client to meet financial goals and sustain long-term improvements.
Our success relied on end-to-end management, a focus on preserving the client’s USPs, comprehensive market reviews, and expertise in negotiation. We prioritised sustainable partnerships to ensure lasting benefits.
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