Sourcing Strategy:

ISG Helps National Tax Agency Collect

The Australian Taxation Office (ATO) is one of the world’s leading revenue collection agencies, with a global reputation for its contemporary, citizen-centric services, expertise and integrity. The ATO is a data-driven digital agency, and technology services are a key enabler of the ATO’s long-term vision and objectives.

Existing contracts for the IT infrastructure services underpinning the ATO’s service delivery were established 10 years ago, and the contracts needed refreshing for the ATO’s future purposes. ISG worked with the ATO to create an IT Strategic Sourcing Program to drive down costs, align with the new “Whole-of-Government Hosting Strategy,” deliver contemporary services and improve client and staff experience.

ISG was asked to design a new operating model and sourcing strategy that would enable the ATO to exploit new technologies and processes more efficiently at a reduced cost. ISG worked with the client to develop requirements that would modernize service management and improve the connection between application teams and infrastructure services.

Seven major tenders were released to the market with a consistent common core, utilizing ISG’s established contract frameworks. ISG is partnering with the ATO for the tender process, including evaluation and contract negotiations. This multi-year sourcing activity is enabling the ATO to leverage a flexible, multi-vendor environment and remain a leading, digital taxation agency, while ISG organizational change management supports the significant change that follows such a major program.

As the program moves into transition, ISG will be with the ATO every step of the way.

Complex Transformation:

ISG Steers Auto Manufacturer Over the Horizon

What began two decades ago as a series of independent sourcing infrastructure projects for one of the world’s largest auto manufacturers has grown through superior service and agile project management into a client relationship that spans the entire sourcing life cycle for ISG. This automaker now views our firm as a trusted advisor for IT transformations, governance and business advisory support.

Our latest work for this client is an exclusive IT service catalog engagement in which ISG provides the governance layer and common service definitions that drive critical standardization for an internal network of autonomous brands. This governance layer is the genesis of all sourcing engagements, which in turn run on a customized ISG contract framework.

The ISG framework allows the client to evaluate and build next-generation IT structures and create contracts for transactions ranging from IT and applications to the technology that powers electric vehicle manufacturing plants. ISG has also been chosen to build the client’s next-decade, zero-carbon footprint business technology model.

Our strong relationship and results for this client ensure that as IT moves out of the manufacturing plant and into the car – and beyond – ISG will be along for the ride.

HRO Advisory:

ISG Helps a Blue-Chip Manufacturer Structure the Future

A blue-chip multinational conglomerate turned to ISG to build the critical, complex HR structure that would underpin its split into three standalone businesses.

The client was under significant pressure to define a new HR service delivery model and transition services to meet its separation timeline. The client was also concerned about adding cost to the model as they moved from one large, global organization to three distinct businesses.

The organization’s HR leadership was familiar with ISG based on the firm’s prior work with two other Fortune 500 companies, and ISG was brought in to advise on an effective HR outsourced model and drive to a market-competitive HRO agreement. Additionally, ISG was asked to run a parallel competitive RFP for retirement services, ensuring an objective and defensible process.

The client credited ISG’s deep HRO and benefits expertise, valuable insights and well-run process with achieving successful outcomes for this important transformation initiative, including:

• An improved HRO model better aligned with the client’s vision of modernizing HR;
• A significantly improved business case enabled by a more efficient, market-based solution, and,
• Negotiated contracts for each of the three new business entities with highly competitive rates, service level commitments, and MSA terms reflective of market standards and appropriate levels of client protection.

HRO is only one aspect of the support ISG is providing this client. The firm also is helping the client redeploy its IT provider ecosystem among the three new entities by separating all contracts and managing the subsequent renegotiation and contracting process.