Strongbow evaluated alternative transformation strategies for legacy Fax services, with the final business case yielding $8M in annual savings, net of investment and implementation costs
Client Situation:
- Fortune 100 Pharmacy Benefits Management firm serving many large Fortune 500 clients fulfilled many of its client transactions via Fax
- Although the current Fax solution had been in place for 15+ years, the current solution had not evolved to leverage new cloud-based technologies, including SaaS and PaaS
- While Fax volumes as a % of transactions processed were declining, overall growth in business volumes continued, making it challenging to retire the legacy platform without disrupting existing clients
Strongbow Approach:
- Strongbow developed a detailed services inventory cataloging all service requirements across multiple business units and use cases, and a current TCO for meeting all business requirements
- Created a comprehensive proforma business case evaluating and quantifying the client’s options to insource Fax operations including: Infrastructure costs, labor costs, implementation / transition costs, operations planning and data center requirements
- In addition, Strongbow conducted an RFP to identify alternative solutions from various third party suppliers that would reduce transition risk and increase savings potential
Result:
- Balancing various technical and operational priorities, the client chose a 2-phased approach, first capturing 38% savings via short term contract extension with the current Fax services provider, followed by the plan to insource for an additional 40% in savings in approximately 2 year’s time