Strategic partnership with a leading North American telco

The telecom industry is undergoing a transformation with the advent of 5G. Our client, one of the largest wireless telecom carriers in the USA, embarked on a journey to revamp their IT model and partnership to gain agility, cost advantage, and innovation at scale. The client’s global operations span four lines of business: network technology & services, corporate & shared services, production operations, and DBA support.

Situation

The client faced several challenges, including a lack of clarity in the transformation roadmap, long decision-making chains, a complex application landscape with redundancy, high ticket volume for business-critical applications, and a high total cost of ownership. These challenges necessitated a strategic approach to optimize pricing and improve efficiency.

Solution

Infosys Consulting adopted a rate card pricing model with productivity improvement and savings for both application management (AM) and application development (AD). For AM, a managed service (fixed price) model was implemented with year-over-year productivity savings, committing up to a 50% cost reduction. For AD, a fixed number of hours were committed on preferential pricing. Additionally, an innovation fund of approximately $50 million USD was created in partnership with the client to drive transformation initiatives that impact revenue and accelerate savings.

Results/business benefits

The strategic partnership and the implementation of the optimized pricing model enabled the client to achieve significant cost reductions and productivity improvements. The approach not only addressed the immediate challenges but also laid the foundation for long-term innovation and agility in the client’s IT operations.