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Background
Sopra Steria has been working with Royal London Group since June 2014 to deliver application management and development services across its life and savings closed book business. During that time we have delivered a high volume of change, enabling considerable
Total Cost of Ownership (TCO) savings for key business services, as well as reducing delivery and business risks. Our high quality delivery has been achieved via a cost optimal delivery model, utilising both UK on-site and Indian off-shore resources.
The challenge
In 2015, as a part of the business transfer of the life and savings book, RLG acquired the life insurance and savings legacy estate from the Co-operative Group. The estate ran on a number of legacy technologies, some out of support. The program code was
complex, with a number of recurring production incidents and the batch operation was sub-optimal. All of these factors contributed to high run costs and on-going operational risks that needed to be addressed.
The solution
From day one, both parties placed a significant focus on optimisation, cost and risk reduction and we put in place resources to identify and deliver improvements. The service agreement provided a framework within which optimisation was incentivised, with
a gainshare commercial model to allow benefits sharing.
Transformation has been achieved over a 2 year period, with a number of improvements being successfully implemented.
These improvements include establishing a strong delivery and change process framework; identifying key risks and defining remediation plans to address them; delivering a pipeline of prioritised cost reduction changes; undertaking root cause analysis
and developing fixes to address recurring incidents; decommissioning redundant data, processing and software; automating regular scheduled activities; and using performance analysis tools to identify inefficient program code, which has been updated
and streamlined.
The results
As part of our work with Royal London, a number of substantial cost and risk reductions have been achieved:
- 40% reduction in application run costs
- 60% reduction in incidents
- 50% reduction in the mainframe capacity requirement
- 75% reduction in the number of call outs
In addition to improving financial performance for the closed book business, optimisation has delivered a more streamlined and lower risk estate, with increased maintainability and change agility. Nick Murison, Supplier Relations, Royal London Group