Business Value from IT

Business Value from IT

Homeserve – Outsourcing

In 1993 a joint venture was created with South Staffordshire Water, recognising a huge gap in the home emergency market where home insurers did not offer customers a complete home emergency solution. The HomeServe vision was born to address this gap offering customers home emergency insurance products. The business is a successful, fast moving FTSE 250 company,   with over 10 million emergency insurance policies sold across  the UK, France, Spain and the US.

The Opportunity

HomeServe’s business relies heavily on call centres utilising voice and data services. The rapid growth of the company, both organically and by acquisition, resulted in a complex telecoms estate, sub‐optimal from a cost perspective and in need of a technology refresh. The challenge was to develop a transformational outsourcing deal to deliver the technical leadership in telecoms, alongside the realisation of significant cost savings.

Virtrium’s Approach

Virtrium provided a team of experts to HomeServe, covering commercial, service delivery and technical architecture disciplines. Using a proven, structured methodology and toolset, the team led the procurement process for the transformational outsource in their specialist areas.

Virtrium’s involvement enabled the HomeServe CIO to actively manage stakeholders across the operational divisions and the Legal, Finance and HR functions to develop the requirements and assess the suppliers’ responses.

In addition to an RFP and scorecard, a comprehensive contract framework was developed with the in‐house legal team including Service Delivery and Management, Exit Planning, Benchmarking, Transformation and the pricing model. An in‐house scenario was also developed which confirmed the case for outsourcing.

The Outcomes

A multi‐million pound cost of ownership saving was achieved. The highly competitive supplier engagement process also resulted in the formation of a marketing and affinity relationship between HomeServe and BT, the chosen telecoms provider.

HomeServe’s structured contract framework was largely accepted by BT ensuring their commitment to the transformational and service achievement targets.

A Transition and Transformation plan was developed and passed to the HomeServe internal implementation team as part of Virtrium’s knowledge transfer.

"Virtrium brought independence and a structured approach to the outsource transaction that was executed by consultants with a deep know‐how of telecoms and outsourcing. This resulted in a competitive bid which delivered important cost savings and marketing benefits for our business."

Trevor Didcock - Group CIO

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