A Case Study on Evaluating ROI through Optimized Tech Staffing Strategies

Challenge

As the digital revolution accelerates, companies are constantly pressured to gain a competitive edge through innovative technologies. Yet maintaining a talented tech workforce remains a significant cost. This case study examines how one global firm optimized its staffing model to preserve capabilities while lowering costs.

Analyzing Tech Talent Archetypes

As a first step, leadership conducted a thorough analysis to understand how these employees were structured. They categorized talent into four archetypes based on value proposition:

Case Study

Category

Staffing

Client

Global Industry Giant

Industry

Retail, eCommerce

Evaluating Sourcing Locations

The leadership examined how talent was sourced across four main categories based on location and employment type:

 

  • High-cost internal staff in major financial centers.
  • Low-cost internal staff located in developing countries.
  • High-cost external consultants.
  • Low-cost external providers with offshore delivery centers.

Reframing Functional Domains

Each core functional domain within the IT organization was then reviewed:

  • IT Governance: Strategy, planning, portfolio management
  • Information Security: Risk management, compliance
  • Business Relationship Management: Partnering with lines of business
  • Application Development & Maintenance
  • Infrastructure Services: Data centers, end-user support
  • IT Operations: Service level management, reporting

Conclusion

The Optimization Strategy

Leveraging findings from the initial analyses, senior leadership collaborated with division managers to craft a multi-faceted optimization approach. The overarching goal was to reduce IT function costs by at least 15% while modernizing supporting infrastructure and tooling to advance the digital customer experience.

Transition non-core, non-differentiating flex play resources support internal teams
Transition non-core, non-differentiating flex play resources support internal teams
Renegotiate contracts with external vendors to demand discounts
Renegotiate contracts with external vendors to demand discounts
Gradually shift external staff and consultants to optimized delivery models
Gradually shift external staff and consultants to optimized delivery models
Transitioning
Transitioning
~30% of core play application development teams to a new Agile software factory in Eastern Europe where total staff costs were 30-50% lower.
Immediate renegotiation
Immediate renegotiation
Combining volume commitments and service consolidations yielded 12-15% ongoing discounts.
Right-shoring
Right-shoring
This on-demand staffing pool provided time-bounded support at an average 20% lower blended hourly rate.