New Market Development
Product Expansion Strategy
Market Expansion Strategy
Revamping Product Strategy using Technology
Outsourcing, Partnership and Alliance Strategies
Executive Outsourcing Solution
Acquisition Strategy and Implementation
Investor Acquisition/ Exit Assessment
Private Equity Financing
Roll-up Acquisition

Outsourcing, Partnership and Alliance Strategies

Scenario: A middle-tier energy and utility company needed to significantly and quickly reduce back-office operational costs and redeploy its capital to earning assets. The client did not have the luxury of time nor the desire or capital to transform internal operations itself. Outsourcing appeared to be a reasonable solution. But what strategy should it use?

Engagement: An HBA Advisor directed a team to assist the client in developing its outsourcing strategy and implementation plan. The strategy called for bundling as much of the back-office operations as it could into a large asset that would be highly attractive to a tier-one ITO or BPO outsourcer. The scope included all or portions of Information Technology, Finance & Accounting, Human Resources, Call Centers, Supply Chain and Meter-to-Cash operations. In addition to strategy, the advisor team provided operational assessment and readiness, RFP and supplier selection, negotiations, financial modeling & analysis, transition planning and governance implementation services.

Results: The client signed a 10-year agreement with Service Provider for $1.6 billion in total contract value. Compared with the client’s original projected 10-year cost, this deal is expected to deliver upwards of $530 million in operating and capital cost savings across all business units. This also provides technological advances and enhanced service capabilities for the client.