Design and implementation of a global IT strategy for a leading Paper & Forest multinational delivering annual cost savings of EUR 29 million

Our client

With annual revenues of EUR 10 billion and over 24,000 employees, our client is one of the global leaders in producing paper, pulp and timber.
The company has production sites in 17 countries at all five continents and sales offices around the world.

case 04

Background:

  • Our client had an inefficient IT through complex, decentralized and fragmented organisation. It did not use shared services or outsourcing for its IT services.
  • There was no clearly defined relationship between IT and the businesses with a clear lack of focus to its internal customers.
  • Furthermore, the IT executives had no transparency of the functional costs and the organizations performance.

Approach:

  • We restructured the IT organization by setting up global IT units enabling synergies on regional and local level. A cooperation model along business processes was developed and strategic core competencies defined.
  • A structured change approach with retention management and a clear and transparent communication through change agents supported the transformation.
  • A nearshoring approach with a selective outsourcing strategy was defined.

Outcome:

  • The new global, integrated IT Organisation had 30% less headcount and reduced IT costs by approximately 29 million EUR per year.
  • IT was accepted as business partner.
  • Strong interest to explore further cost efficiency potentials through a well-defined mix of captive nearshoring and selective outsourcing.


 

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