Case Study: Orbital Engine Corporation
In September of 2002 Orbital Engine Corporation commissioned TSA to perform a Risk Assessment of their IT department. Orbital had just undergone a significant retrenchment programme as a component of realigning their business, a strategy that is now recognised as a commercial success. TSA identified that this programme had resulted in a scaled reduction within the IT department that left them at operational risk and reliant on non-strategic third parties, while primary infrastructure support needs had remained fundamentally unchanged.
TSA produced a comprehensive risk assessment that gave an accurate summation of the environment and listed a number of risk areas, with many quickly coming to fruition.
Under an innovative approach, TSA offered to discount the Risk Assessment on the understanding that they would present a professional assessment report that would stand on its own merits, and an additional report evaluating the commercial viability of outsourcing the IT department. Orbital happily accepted the associated cost reduction, initially believing that TSA could never come up with a delivery and cost model commercially viable for Orbital. They admitted to having tested the market on several occasions over recent years.
TSA delivered an innovative cost and delivery model that focused on improved process, productivity and service levels within a contingent mix of skilled resources that were proactively introduced into the site as required. This was complemented by other helpdesk, network and remote management utilities. The acceptance of the approach resulted in a successful contract being awarded for a 3 + 3 year period.
Under a cost containment model that matched the Orbital in-house cost model, TSA have significantly reduced risk by introducing a Strategic Technology Partner that functions seamlessly as though they were part of the internal team, whilst removing the reliance on more expensive one-off third parties.
Orbital operations manager, Geoff Armstrong, claims he has been happily surprised with the way TSA have continually exceeded his IT industry expectations. He recognises they have introduced an increased level of process, productivity and measurable service levels within a significantly reduced team environment, something he had expected them to struggle with.
Mr Armstrong confesses that he had been concerned about losing control, an issue TSA challenged during negotiations. TSA reinforced that their partnering approach and delivery model would actually increase Orbital’s level of control and allow Orbital to focus on their core business of engineering operations. Mr Armstrong now acknowledges that this has been the end result. Mr Armstrong was impressed with the mentoring approach adopted within TSA that reinforces a business aligned, business case process when considering any IT spend.
He quotes examples where TSA team leaders had challenged vendors trying to sell solutions into Orbital and spelled out reasons why they commercially couldn’t present this for procurement approval. This business case approach has helped the overall cost containment model. Whilst it was something that had always been reinforced by TSA directors, he hadn’t realistically expected it to be delivered as effectively as it had.
Orbital acknowledges the role that TSA have played as their Strategic Technology Partner and happily endorse them as a Partner of Choice.
This was reinforced when the Orbital board changed a contract renewal mandate that was issued company wide to renew the outsourcing contract at the 3 year renewal point in 2005 from a 3 year period to a 7 year period in full recognition of TSA Corporation exceeding all expectations from a service and cost containment approach.