BankCo, a large bank, had complex and inefficient IT. Its IT costs were significantly above the industry standard, thanks to legacy systems, regulatory issues and a lack of scale. Management wanted to reduce IT costs by 30%. BankCo hired an external service provider (ESP) to initiate and drive an IT outsourcing initiative, but BankCo did not create a thorough deal rationale and skipped financial analysis and a Request-for-Proposal (RfP) process. This created business and IT issues.
BankCo found itself unable to execute the deal alone and asked Bain for support.