Business SituationThe ability to minimize service disruptions and maintain the stability of key platforms and applications is becoming more vital to trading operations within integrated energy companies. These trading divisions must achieve IT service levels that provide them with maximum availability and stability for the platforms and applications that support their time-sensitive and volume-based operations. To achieve this objective, while also reducing its costs, the trading division of one international energy company decided to outsource management of IT support for its trading platform to Avanade Inc.
With Avanade in place, the division has noted much improved quality of IT services supporting its trading platform. Higher service levels have helped the division cut the incidence and duration of downtime impacting key systems and applications to a significant extent, thereby helping the division capture revenue it was losing during downtime. The division credits greater stability and availability of the platform to the depth and variety of experience and skill that Avanade provides. Avanade has also helped the division expand and speed up application and technology deployments, which it has achieved without needing to hire additional IT staff and contractors.
SolutionPrior to moving to Avanade Application Managed Services, the trading division had gradually enlarged its IT team to manage a growing number of applications. That strategy changed with the arrival of a new head of IT who understood and appreciated the potential value of outsourcing application Management.
The IT manager explained the rationale for looking to a managed services provider to improve the team's performance: "Our new strategy was to use managed services to improve the quality of service from IT and to provide greater business agility, especially with the adoption of new technologies."
- $60.3 million (discounted) over five years
- ROI of 358%
- Payback in 8.4 months
- 50% reduction in downtime incidents
- 60% reduction in average time needed to resolve downtime
- Avoided hiring significant numbers of internal IT staff and contractors
- Capturing more revenue because of less downtime and improved ability to take advantage of business opportunities