Business Value from IT

Business Value from IT

Old Mutual Wealth – Outsourcing Contract Review

Old Mutual Wealth UK (OMW) is the largest wealth management business in the UK and is owned by Old Mutual plc, one of the largest financial services companies in the world. Old Mutual was founded in 1845 and is a FTSE100 company overseeing £307.6 billion in customer investments for 16 million customers worldwide. OMW provides financial advice, a range of financial products, bespoke investment management and high performing investment funds.

The Challenge

OMW was undergoing a major transformational change programme. This would enable OMW to increase efficiency and reduce costs. This programme was significant in its size and complexity, with delivery timescales over four years. The challenge for the programme was to understand what impact they would have on the supplier estate across the business and the associated supplier contracts. The  programme would impact all types of contracts mainly IT, but also other product or service providers to the wider business areas and  each type of impact needed to be identified and the risk analysed.

Virtrium’s Approach

Virtrium worked closely with the architects and project managers in the programme, the two sourcing teams and other project leads across the business, to understand the scope of the supplier base. Virtrium gathered knowledge of the current programmes’ timelines and deliverables. This data was used to carry out a risk analysis and document the level of impact of the contracts and any overlap with the programme contractual requirements.

The Outcomes

Virtrium delivered a detailed document outlining the full scope of contracts that would be impacted by the programme. Each contract was reviewed and pertinent terms were highlighted to the business. A risk analysis was carried out and mitigating actions were outlined. A strategic plan including an approach for communications was developed regarding the engagement of impacted suppliers and outlining all the commercial and contractual information that had been validated.  Virtrium were able to:

  • Create a contract calendar documenting the termination timelines. This could be used with all projects in the business to ensure that any overlap with Supplier Engagement and Contract work was identified at an early stage.
  • Identify what type of impact there would be on each supplier and develop a strategy to mitigate the associated risk.

Virtrium was able to provide high quality commercial contract subject matter expertise and a consultant with a pragmatic style that delivered the outcome effectively

Nicky West, Programme Manager, Old Mutual Wealth

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