NewsCo*, a globally recognized leader in providing breaking news and high quality, omnichannel content and content dissemination technologies, was looking for pragmatic, exacting solutions to reduce its operating costs without breaking its long-standing social contract with its global workforce. The costs associated with newsgathering and content dissemination technologies had skyrocketed during the proceeding 5 years. Major investments were made in developing and evolving content gathering and dissemination platforms, but business requirements were outpacing IT’s ability to deliver. Platform reliability and scalability grew increasingly complex and unreliable despite ever increasing investments. In addition to escalating IT costs, the revenue impact from existing and emerging competitors created both P&L and balance sheet pressures prompting NewsCo to request P&C’s help in evaluating and identifying realistic solutions, where possible.
P&C worked closely with NewsCo to identify a focused list of priority areas for cost reduction, to quantify the potential savings opportunity, and to map out the process and structural work effort required to obtain the most effective outcomes. Together, we agreed to a 9-month timeline from the beginning of the project to full implementation of structural changes and an initial conservative forecast of $25-30M/year cost savings opportunity.
To accomplish this, we:
P&C recommended four major transformation initiatives to deliver the performance improvements and cost reductions sought by NewsCo:
During a fast-paced 9-month engagement, P&C provided a robust set of enduring outcomes enabling NewsCo to meet its business needs for years to come. The results included annual savings of $86M, which was approximately 55 times P&C’s fees.
Outsourcing non-core business functions are now part of NewsCo’s culture and best practices. NewsCo transformation stakeholders–both C-level executives as well as the hundreds of employees across all individual work teams–took ownership of the goal, the significant efforts, and the tremendous accomplishments.
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.