A globally recognized IT outsourcing and consulting giant, our client is among India’s top 5 IT companies. However, for the past three years, they were experiencing a steady revenue decline. The IT firm consulted Sapience to help increase productivity with employee productivity analysis, lower operating costs, and increase profitability.
Hour gained in work effort from each employee.
Reduction in employee count for existing customers.
productivity improvement within 6 months.
Despite being one of the largest and most successful global IT outsourcing firms in India, our client had experienced a steady decline in profitability for three years in a row. A large, 5,000-person business unit was responsible for performing work, and fixed SLA rates were in place. However, operating costs were steadily increasing. Management had no real-time visibility into the actual workload and capacity utilization of the company, leaving business leaders with no indicators to predict delivery issues. In addition, employee retention was low, leading to high costs of turnover.
The client’s management team was seeking business transformation. Leadership wanted productivity improvement and capacity utilization optimization, to yield higher profitability. They initially deployed Sapience across a team of 1,000 users. Sapience vendor management software collected and analyzed data that revealed:
The daily average “work time” (total on-PC time on work-related activities) per employee was 35-40% (more than 1.5 hours) lower than the company’s expectations.
Work distribution was uneven, with long hours for the top 20% of performers, lower effort by the next 60%, and below-par efforts for the remaining 20% of employees.
The top performers were facing heavy stress.
After implementing Sapience, the client began to understand work patterns and how they could be improved to better balance workload management and increase productivity. Over the next year, the firm deployed Sapience across their entire organization, to nearly 5,000 users. They experienced the following results:
Increased each employees’ on-PC time by 1 hour per day, in a few months.
Increased time spent on core activities (Value Time) by 1.5 hours (30%).
Substantially increased SLAs from the 5,000-person team.
Reduced employee count for existing customers by 7%, and redeployed released employees for new customers, saving hiring and training costs and improving revenue per resources.
The workload was re-balanced, to ease stress on overworked employees, and improve career satisfaction.