Aegis Advisory and Consulting

Outcome based Spending - An integrated approach to cost optimization

- Reducing TCO by 10-15%

Private & Confidential

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Achieving cost efficiency has become an imperative now in the face of competition & reducing profits.
Challenges of Existing Cost incurring trends in organizations
Higher proportion of Fixed costs and low variable spends Processed looked at in isolation with 1 process having multiple owners at each hand-off but no overall process owner Legacy costing practices / Absence of right costing methodology Hidden costs are unknown Ineffective policy adherence to control spend Non-existence of right tracking mechanism Roll-back of already incurred investments difficult Increasing costs due to frequent expediting / expansion/ overrun High cost of poor quality Investments incurred/ decision taken not linked to the business outcome Maverick Spends
Aegis Limited - Private & Confidential 2

Impact

Disintegrated view of spends

Distorted cost culture

Margin pressures

Higher pricing to customers

Benefit realization chart

Companies can realize upto 10-20% savings on total spend
Figures are only potential indicators and will vary for organizations depending upon their spending pattern and cost management structure

Aegis Limited - Private & Confidential

We dont call it Cost reduction.. We refer to it as Outcome Based Spending

Clear Wins: Immediate profit and Loss impact spend categories Optimization on Administration spends like Travel, Printing and Stationary, Postage and Courier, Electricity, etc Negotiations with vendors Strategic Sourcing Waste Elimination: Business process re-engineering, Operations blueprint Redundant business models / sub SBUs Effective Inventory tracking Productivity enhancement of Sales and Operations teams Optimizing transaction cost and usage of pro-active/ reactive communications

Waste Elimination Cost Variability

Spend to revenue linkage: Commission/ Salary structure/ Revenue per user Marketing and advertising spends to business Training and other sales facilitation programs measurement Office infrastructure and manpower linked to branch P/L

Clear Wins

Spend to revenue linkage

Outcome Based Spending (OBS)

Value Added Investment

Sweating of Assets

Cost Variability: Outsourcing/ off-shoring/ Shared Services Building variable cost model for fixed costs Manpower Modeling / Transaction based costing Budget tracking based on relation to revenue Estimation of Cost incurred to serve customers

Value added investments: Hot-desking to reduce capital cost and other incidental costs Virtualization and Cloud computing Optimized Self Service capability enhancement
Aegis Limited - Private & Confidential

Sweating of Assets: Building integrated systems for all asset utilization tracking Deriving full value of the assets available Assess buffer capacity and optimizing opportunities

We see resonance !
Because we have developed insights and are outcome partners
Type Period Engagements 4.5 months

Large HC Provider USA

Expanding customer base
Re-defining CX Re-defining metrics, providing visibility Align organization for accreditation

Leading Mfg. Co.

Cost Containment & Ops Excellence Performance Management & Shared Services for SM Cascade of metrics and Exception reporting

CX Strategy
Cost Optimization Revenue Enhancement Tech Transformation GTM Strategy Social/ Digital Media Brand Management KPI Management Others Grand Total
CX Continuum Enriching CX- Consulting Enhancing CX- Analytics Enabling CX - PPT Extending CX- Shared Serv Managing CX - BPO

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7 5 4 3 2 2 2 3 40

Large Mobile Retailer

Enable Revenue Growth Driving Higher Conversions for existing footfalls delivering superior Customer Experience Redefining CX Strategy

Large Truck Mfg. Co.

Sustain Growth Trajectory Re-defining KPIs for all revenue streams Creating Line of Sight across levels, processes & functions

Large Bank in UK selling insurance

Optimizing mis-selling refund Define the strategy for managing PPI complaints and ensuring closures in reduced TAT

Large Private Bank

Increase Relationship Value Outside-In assessment of CX across various channels Define context, cross channel transition patterns & CX effectiveness
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Thank You!

Aegis Limited - Private & Confidential

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