Major regional bank saves $12M in costs with Sapience.

Transforming Outsourcing Governance with People Analytics

Our client, a leading regional bank, wanted to assess the productivity and efficiency of its IT outsourcing partners using Sapience for vendor management. In order to be successful, they understood the need to ensure they are getting the best return on their IT outsourcing investment. What we found surprised them.

1.7

average productive hours per day, for the bottom 20% of users

3.9

average productive hours per day, for the middle 60% of users
 

12

in cost savings were gained by increasing the productivity of the bottom 20%.

Challenge

As a leading regional financial services company, our client managed a contingent workforce of 1,200 IT contractors. The outsourcing governance team wanted to review and test their team’s productivity and efficiency with Sapience.

Analysis

Sapience conducted a pilot study and benchmarked utilization across the client’s employees and its technology partners, using our vendor management software. Based on the results, we developed recommendations to increase productivity. The results of our business process optimization study showed that the bottom 20% of users spent an average of only 1.7 productive hours on the system per day, but still charged nine full hours to our client, and appeared to be operating at maximum capacity. The largest percentage of users, the medium 60%, were somewhat more productive, but still spent only 4.9 hours of the day in productive work. The top 20% of performers spent an average of 6.3 productive hours per day.

Solution

Once the bank understood the team’s baseline performance, Sapience worked with the contingent workforce management team to set goals for business process optimization, and measure progress. Our client wanted to increase productivity by ensuring team members were focusing on the right activities while at work. Sapience allowed managers to compare productivity among various teams, and identify teams with sub-par productivity. This allowed our client to select vendors based on productivity in the workplace, and re-engineer processes for teams that required employee productivity improvement.

Results

Sapience measured productivity improvements following business process optimization, with excellent results. Sapience data showed clear, incremental changes over time, raising average daily employee productivity in the workplace from 3 hours to 5.9 hours per day. Our client was able to realize $12M in cost savings by increasing the productivity of the bottom 20% of users, instead of hiring additional people.

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