Client Result
Optimizing IT workforce to save $65M
Guiding a utility to optimize its IT workforce and achieve $65 million in savings
Client Result
Guiding a utility to optimize its IT workforce and achieve $65 million in savings
West Monroe conducted discovery workshops to gain a deep understanding of the client’s workforce dynamics. We analyzed their contingent worker data using our proprietary Intellio® Insights tool, benchmarking external labor rates and identifying compliance gaps. This analysis revealed significant cost-saving opportunities, as well as risks associated with the high percentage of contingent labor. Based on our findings, we developed a robust business case for workforce optimization, outlining how shifting the ratio of external to full-time employees would reduce costs, improve compliance, and enhance the quality of the workforce.
Our team worked closely with the client’s IT and HR departments, alongside West Monroe’s operations, workforce, and industry experts, to co-create a three-year roadmap for IT workforce optimization. Together, we outlined steps to shift the labor mix from 75% external to 60% and consolidate external labor sources from more than 100 to fewer than 20 preferred suppliers. This would reduce costs while prioritizing full-time employees for strategic roles, ensuring a long-term, sustainable approach to talent management. Our collaboration guaranteed that the solutions were both actionable and aligned with the client’s business goals.
Once fully executed, our workforce optimization plan is projected to generate $65 million in savings over three years, primarily through reduced reliance on high-cost contingent labor and better alignment of workforce resources. Time-to-fill for key roles would improve by 80%, enabling faster project delivery and higher productivity. The client also would mitigate almost 100% of the compliance and legal risks associated with contingent labor, creating a safer, more efficient operational environment. This blueprint positions the utility for long-term success with a clear focus on sustainable workforce management and improved employee engagement.
A large investor-owned utility sought to reduce its reliance on expensive external labor, which made up 75% of its IT workforce. This over-reliance posed financial and operational risks, prompting the client to seek a solution that could optimize costs while improving the quality of their workforce. West Monroe partnered with them to design a comprehensive IT workforce optimization blueprint projected to save $65 million over three years. Our plan focused on rebalancing the ratio of contingent to full-time employees, improving compliance, and consolidating labor sources, which would lead to faster talent acquisition, better operational efficiency, and significant cost savings.
projected cost savings over three years from contingent workforce optimization, alone
anticipated improvement in time-to-fill, increasing organizational efficiency
reduction in risks associated with utilizing contingent workers, onshore, as staff augmentation
