IT Managed Services Provider Achieves $4M in Annual Savings through Process Optimization and Offshoring

A leading IT managed services provider (partnered with Private Equity) delivering support, infrastructure, and cloud solutions across Canada, focused on serving SMB and enterprise clients through a hyper-regionalized model.

$4M
Annualized net savings
23 FTE
Reduction

Challenge

The client was aware of operational inefficiencies that were limiting profit margins and had realized these were stemming from staffing and process issues. This suboptimal resource utilization and fragmented workflows across locations was also limiting the client’s ability to scale.

Discovery

Through structured data analysis and cross-functional workshops, we uncovered key issues that were contributing to the challenges identified:

  • Misaligned staffing structure compared to internal best practices
  • Ambiguous roles and accountabilities
  • Disparate, undocumented, and redundant processes
  • Overcapacity supporting low-margin accounts
  • Inefficient resource allocation and underutilized automation
  • Redundant and manual client offboarding, project closure, and user administration processes
  • Overlapping responsibilities, leading to wasted effort
  • Lack of standardized operating procedures causing process variance
  • Insufficient automation/AI adoption
  • Inconsistent procedures across regions, causing integration and scale challenges
  • Financial losses on non-core, low-revenue clients

Approach

To address these challenges and build a scalable, high-performing operating model, we implemented a comprehensive, action-oriented program:

  • Process Digitization & Standardization: Core business processes were mapped, documented, and standardized on a centralized digital platform to ensure efficiency, consistency and transparency across all regions.
  • Role Clarity & Accountability:  A RACI framework was implemented eliminating overlap and clarifying responsibilities for all key functions.
  • Strategic Offshoring:  Non-core and low-value activities were identified and transitioned to offshore resources, improving cost efficiency and allowing domestic teams to focus on higher-value work.
  • Automation of Repetitive Tasks:  Automation was deployed for user administration, ticket triage, and compliance reporting, reducing manual labor and error rates.
  • Performance Measurement & KPI Integration:  Role-specific KPIs were established and integrated for real-time performance dashboards to drive accountability and data-driven management.
  • Change Management & Training:  Targeted training was delivered incorporating a structured handoff with continuous support to build internal capabilities and sustain improvements that would drive ongoing change.

Value Created

  • $4M annualized net savings (direct and indirect), with a payback period of less than 12 months.
  • 23 FTE reduction and realignment of the team to focus on higher-value activities, leading to greater engagement.
  • $1.4M in process improvement savings through automation, consolidation, and standardization improvements.
  • Consistent, scalable operations are not achievable to allow smooth integration of future acquisitions.
  • Improved profitability, service delivery, and employee satisfaction through enhanced role clarity and aligned KPIs to support individual success and strategic focus.
The Poirier Group | IT Managed Services Provider Achieves $4M in Annual Savings through Process Optimization and Offshoring

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The Poirier Group | IT Managed Services Provider Achieves $4M in Annual Savings through Process Optimization and Offshoring

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