How We Saved a Holding Company $4M Annually in IT Costs

Working with a large holding company managing multiple subsidiaries, we discovered that IT spending had grown organically across each entity without central oversight or strategy. Each company maintained its own vendors, contracts, and technology stack—resulting in massive duplication and missed opportunities for economies of scale.

The Challenge

The holding company was spending over $8M annually on IT across all subsidiaries. There was no unified strategy, no vendor accountability, and no visibility into what was actually being delivered. Worse, despite the high spend, customer satisfaction with IT services was declining.

Our Approach

Rather than immediately cutting costs, we started with a comprehensive assessment:

1. Vendor Audit: We cataloged every technology vendor across all subsidiaries and analyzed their contracts, pricing, and performance.

2. Service Mapping: We documented what services were actually being delivered versus what was being paid for.

3. Stakeholder Interviews: We spoke with executives, IT staff, and end users across all companies to understand pain points and priorities.

4. Benchmark Analysis: We compared their spending and service levels against industry standards.

The Results

Over 18 months, we achieved:

• $4M in annual savings ($15M total over the engagement)
• Zero reduction in service levels—in fact, service quality improved
• Improved customer satisfaction scores by 35%
• Unified technology strategy across all subsidiaries
• Better vendor accountability through consolidated contracts and performance metrics

Key Lessons

The transformation wasn't about slashing budgets—it was about strategic alignment and accountability:

• Consolidation doesn't mean standardization: We maintained flexibility for each subsidiary's unique needs while gaining economies of scale.
• Vendor relationships matter: By consolidating contracts, we became a more important customer and received better pricing and service.
• IT staff were allies, not obstacles: The in-house IT teams were relieved to have executive support and clearer direction.
• Quick wins build momentum: We identified and implemented several immediate savings opportunities to demonstrate value early.

The Bottom Line

IT spending isn't inherently good or bad—what matters is whether you're getting appropriate value for your investment. With independent oversight and strategic guidance, most organizations can significantly reduce costs while simultaneously improving service quality.

If your organization has grown through acquisition or lacks central IT oversight, you may have similar opportunities waiting to be discovered.