In this case study, WGroup helps a multinational Healthcare services company examine risks and benefits of outsourcing IT infrastructure and recommends In-house solutions. WGroup approaches an evaluation of sourcing options by collecting quantitative and qualitative information, related to the client’s challenge and constructing models that provides objective analysis and market comparisons of suitable solutions.

1. Opportunity
The impact of a poorly planned and
executed outsourcing transition is
extensive, and the financial, operational
and human capital implications
are significant. Having decided
to outsource its SAP applications
maintenance and selected an
outsourcing service provider, the
client recognized that they would
need guidance to navigate the
complex transition to a remote call
center and service delivery center.
They would need a trusted partner
who could facilitate a process to
avoid the pitfalls and ensure that the
outsourcing implementation would
occur on-time, with as little disruption
as possible, and set the stage for a
successful outsourcing relationship.
The client required specific help in
the gathering and presentation of data
and to facilitate key areas such as:
• Program management of transition
milestones and deliverables
• Process definition to accommodate
the new SAP model
• Coordination of knowledge
transfer activities, and
• Synchronization of transition
activities by linking the
efforts of the client and
outsourcing service provider.
Because they recognized WGroup’s
extensive experience with the
complex issues involved in an SAP
outsourcing transition, and because
WGroup had successfully helped
them in determining the need for
outsourcing and in selecting an
outsourcing service provider, they
selected WGroup for the engagement.
Approach
Successful outsourcing transitions
require careful management of
interdependent activities and attention
to detail. WGroup worked with both
the client and the service provider
to navigate smoothly through
identified challenges, anticipate
unexpected challenges, and help the
client mitigate risk and maintain
control throughout the process, all
the while adhering to timelines.
WGroup undertook several linked,
concurrent efforts. Because the
outsourcing service provider had
been selected in part because of its
excellent transition methodology,
the WGroup team prepared a
client-centric transition plan that
coordinated with and complemented
the outsource service provider’s
transition plan. WGroup leveraged
its insight and experience to improve
Drive Your Business
SAP Applications
Outsourcing Transition
Leading Health Care Organization Navigates
through a Complex Transition Process
Health Care & Life Sciences | SAP Outsourcing
1
WGroup’s extensive
knowledge of
transition processes and
SAP combined with their
experience in risk and
issue management, from
both the client and service
provider perspectives,
ensured the project
delivered seamlessly and
on-time in 6 months.

2. Value Delivered
Beyond strong program management
and facilitation, WGroup brought
deep knowledge and experience in
outsourcing transition management to
the client. Even though the client had
experience with previous outsourcing
engagements, it did not retain the
skills ready for a complex outsourcing
transition. Outsourcing transitions are
discrete events and are not core skills
the client retained and invested in over
time. WGroup was able to facilitate
a transition in 6 months, as planned,
by helping the client prepare for
potential problems, resolve unexpected
issues and work seamlessly across the
client and service provider cultures.
Thanks to WGroup’s detailed
understanding of the skill sets
required to manage development
and support, aligning the client
with the service provider’s service
management model, and asking the
right questions during service tests,
the client was able to conduct business
as usual without interruption.
WGroup’s consistent efforts to align
the client and outsourcing service
provider ensured that both viewed
the transition process and outcome of
the engagement positively. WGroup
also helped negotiate liability clauses
in the contract that satisfied the
client’s risk management concerns
and held the outsource service
provider to performance requirements
it believed to be reasonable.
The WGroup team also provided
additional value to the client with
regard to staff changes. Working
with the outsourcing service
provider, WGroup arranged for
several key client personnel to
make their own transition—to the
outsource service provider’s staff.
the provider’s understanding of
transition objectives, activities and
dependencies; to identify next steps
and contingencies; and to shorten
the planning cycle. At the same time,
WGroup facilitated the development
and implementation of a governance
framework, practices, and reports.
Insights and Advice
The complex process of creating a
service management model for SAP
applications poses unique challenges.
Because the client is in the health care
business, those challenges are further
complicated by risk and liability issues
due to HIPAA regulations. WGroup’s
extensive combined experience in
transition management, SAP and the
health care industry enabled them to
meet those challenges. WGroup made
sure that their transition approach
brought the client to the service
management model without creating
any issues for the organization.
Other critical components of the
successful transition included:
• WGroup’s thorough understanding
of skill sets required to manage
development and support;
• Due diligence that provided
important transparency for the client
• Development of a knowledge
repository of all SAP and
non-SAP solutions; and
• Service tests with service desks
before going live that resolved
important questions without
impeding everyday business.
Contact Us
WGroup
301 Lindenwood Drive, Suite 301
Malvern, PA 19355
610-854-2700
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About WGroup
Founded in 1995, WGroup is a boutique management consulting firm
that provides Strategy, Management and Execution Services to
optimize business performance, minimize cost and create value. Our
consultants have years of experience, both as industry executives and
trusted advisors, to help clients think through complicated and pressing
challenges to drive their business forward.
For more information on WGroup, visit http://thinkwgroup.com