Case study: Software, BPO & IT Services

Cost reduction programme for a global software and BPO business

The Problem: High overhead costs impeding profitability

A global software and BPO business had increased its revenue for six successive quarters, but cross-divisional overhead was hampering group EBITDA performance.

The company wanted to reduce cost in IT, Finance, HR and Real Estate, whilst continuing to deliver front office efficiencies from offshoring and process improvement. With a fragmented supplier base, there were also opportunities to reduce cost in third party spend. The overall savings target was set at £100m, equating to 15% of the cost base, which was further challenged by the fact that the client had driven three previous cost-out programmes over the past three years.

Credo was asked to set up the programme, and work with the executive team to begin delivering savings.

Our Approach: Review back-office functions and set cost-out targets

We started by helping management establish a well understood cost baseline against which savings could be measured.

We then setup work streams with internal and external experts for each back-office function. The overall savings target was distributed to each workstream and solutioned "bottom up"; to create detailed plans showing when and how savings would be made.

In parallel we setup a governance process to monitor the programme and ensure the savings did not impact top line or any existing customer commitments.

Working with the CFO we developed a method for tracking cost reduction and reporting regularly to the Board.

The Result: Successful programme to reduce group costs by 15%

We supported each workstream to produce their detailed plans, which were signed off by the CEO, and established cost reduction of 15%.

After initiating the programme and supporting it for the first six months, we handed control over to an internal team. Careful handover meant the team had everything it needed to continue execution.

Six months later, the programme is on track and delivering the anticipated savings.


Tim Nixon
Tim leads Credo's IT Services practise, with a particular focus on HCM, BPO & offshore strategies and Web hosting & domains. Tim has extensive consulting & general management experience across the sector having lived and worked in the UK, Europe, India, South East Asia & the US.
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