had experienced massive revenue and share loss during the previous three years, though the company had conserved cash through significant cost reductions.. Management developed an ambitious strategy to transform the company by refocusing the organization on core competencies.
TechCo asked the Bain team to provide solutions to the following questions:
- What should be considered for outsourcing?
- What's best end-game option (best-in-breed vs. one-stop)?
- How do we rush through Request-for-Proposal (RFP) and negotiations without leaving money on the table?
Time was of the essence: the company needed to sign a contract in less than six months. However, there were a number of complications:
- The company was completely vertically integrated for core products
- An "I don't trust foreigners" mentality prevailed
- 70 percent of the executive team was new to the job
- Many in the company were skeptical of outsourcing due to past failures
- The client was in the midst of a transformation of its business model
- Other activities were being outsourced simultaneously