Jaguar Land Rover
Company Scale:Revenue £25 billion annually (17-18)
Aveas worked with Jaguar Land Rover over a three/four period as they went through rapid growth. This case study provides a summary of the sourcing work that we did for them, and more detailed case studies on this work, along with our work for them on Strategy and Change Delivery, can be found on this website. Our sourcing scope, delivered over a number of different initiates, included:
- Management of internally hosted data centres
- Outsourced data centres
- End user compute
- Service Desk
- Application maintenance
- Managed print
- Project delivery
- Service Integration
Initially, our work was focused on delivery of service excellence to UK sites, but the reach was later widened to include their global national sales company along with new car plants in Brazil and Slovakia
Jaguar Land Rover (JLR) was experiencing unprecedented demand for their vehicles as they sought to expand the vehicle range and widen their global reach. Demand was not just at all time highs in Europe, but also across North and South America and China. This demand was against the backdrop of aged technology estate which had been subject to years of under investment. In order to change rapidly, the CIO took the decision to outsource all of their IT services. Going from a position from only having an element of data centres outsourced to a total IT outsource model was a bold strategy, and one which Aveas helped to formulate and implement. As trusted advisors to the CIO, we played the leadership role across all of the sourcing initiates.
What did Aveas do?
Aveas were responsible for the end to end service design across all of the sourcing engagements. This included, capturing detailed requirements, developing the service level regime and the cost model across each of their towers. In parallel, the design and ongoing impact of each initiate to the operating model was also led by our teams.
Aveas led the market engagement through the various stages to down select. As well as providing support to JLR, we were asked to lead Tata Motor Company through the same process and drew up an approach for parallel market engagement (and later down select and contract award). The stages included RFP, Pricing drops, early contract clarifications and BAFO coupled with clarification rounds.
Supplier Evaluation and Selection
Aveas designed the evaluation model and led the clients through the evaluation phase and eventually supplier selection based on a wide set of criteria, including, service offering, quality, value for money, innovation and cultural fit. We ensured a fair selection was achieved in each case.
Aveas owned the business case on behalf of the CIO. The business case was an essential element to this souring engagement as the CIO sought to publish it, and, hold the supplier accountable for delivering the cost savings (allowing him to achieve his NPV). We were therefore responsible for cost and risk based modelling based on the supplier initial responses, and later, through the contract development as requirements were further clarified.
Contract Development and Award
Aveas, working closely with their external legal team, owned the contract negotiations on behalf of the client. We drafted the initial schedules and led all non legal negotiation sessions through to the finalisation of the schedules and the award.
What were the outcomes?
Following the completion of all of the sourcing initiates (and subsequent implementation also led by Aveas), JLR significantly reduced the supplier mix, reduced head count and, to coin the phase, allowed JLR to focus on their core competencies – building luxury cars – leaving the delivery of IT delivery to the experts. They achieved, with out help, an operating cost reduction of circa 40%, and significantly reduced the complexity of IT delivery.
However, the benefits that we help to deliver were not just for JLR but also Tata Motors who, on joining our programme, were also expertly led by us to equally successful outcomes.