IT Mark-to-Market

TPI’s Mark-to-Market provides an unprecedented level of marketplace fact and defined alternatives to inform a go-forward plan of action.

This enterprise-specific offering provides detailed comparisons of your IT operating costs as compared to marketplace alternatives. With this qualitative and quantitative data in hand, you are able to take full advantage of sourcing viability assessments by being fully informed of comparable marketplace data.

After organizing your business and technology processes into logical functional groups, or “towers,” we compile a profile that captures and summarizes performance, cost and service information for all processes within each tower for comparable geographies. We derive our marketplace from recent TPI transactions comprised of more than 900 tower/geography records resulting from  more than 100 engagements.

The analysis considers equally the IT environment in terms of its alignment to the enterprise’s overall business direction, as well as to external comparisons.

In undertaking our analysis, we deploy a team of experienced and accomplished advisors who organize and lead several interrelated tasks:

• Develop base case
• Identify current state service delivery model for the presently identified “in-scope towers”
• Quantify current state cost of ownership of the “in-scope towers” and build comprehensive financial model
• Quantify current state volumetrics and resource drivers for sensitivity analysis
• Identify the future state (internal base case) service delivery model for the identified “in-scope towers,” to include anticipated investments
• Perform market comparison
• Compare financial future state (internal base case) to our proprietary TPI Financial Data Repository for companies of similar size and complexity
• Provide estimate of “Mark-to-Market” (M2M) cost opportunity for applicable “in-scope towers”
• Assess variance and initial recommendations
• Create a portfolio map and prioritization of cost opportunities across the “in-scope towers”
• Gather current state and future state business and strategic objectives and provide recommendations for scalable, variable cost service delivery approaches for “in-scope towers”
• Finalize recommendations
• Short-list alternative service delivery options and create associated business case for “in-scope towers”
• Develop an opportunity scorecard to represent the relative performance of your IT operations against market references, with elaboration on drivers affecting variances and impact on future performance
• We use data from our proprietary Financial Data Repository for our evaluation. This is not a benchmark; this is a comparison to what might be able to be achieved in a competitively sourced transaction to tier one and two service providers. The judgment we apply yields recommended actions for ‘in-scope towers’ and a tactical plan for pursuing recommendations – including potential investment and funding alternatives, sequencing and risk mitigation strategies.

Our Mark-to-Market provides a foundation based upon a comparison with the present marketplace — not a historical reference. We build a comprehensive financial model to portray the client-operating environment in terms that factor complexity, variability and regulatory requirements. We then compare this model against a rich repository of like environments — pricing for similar volumes of similar quality services that are committed through a competitive evaluation process. In this way, you may obtain the most realistic point of evaluation related to existing operations — as well as actionable alternatives.