Optimizing IT workforce to save $65M

West Monroe conducted discovery workshops to gain a deep understanding of the client’s workforce dynamics. We analyzed their contingent worker data using our proprietary Intellio® Insights tool, benchmarking external labor rates and identifying compliance gaps. This analysis revealed significant cost-saving opportunities, as well as risks associated with the high percentage of contingent labor. Based on our findings, we developed a robust business case for workforce optimization, outlining how shifting the ratio of external to full-time employees would reduce costs, improve compliance, and enhance the quality of the workforce.

Our team worked closely with the client’s IT and HR departments, alongside West Monroe’s operations, workforce, and industry experts, to co-create a three-year roadmap for IT workforce optimization. Together, we outlined steps to shift the labor mix from 75% external to 60% and consolidate external labor sources from more than 100 to fewer than 20 preferred suppliers. This would reduce costs while prioritizing full-time employees for strategic roles, ensuring a long-term, sustainable approach to talent management. Our collaboration guaranteed that the solutions were both actionable and aligned with the client’s business goals.

Once fully executed, our workforce optimization plan is projected to generate $65 million in savings over three years, primarily through reduced reliance on high-cost contingent labor and better alignment of workforce resources. Time-to-fill for key roles would improve by 80%, enabling faster project delivery and higher productivity. The client also would mitigate almost 100% of the compliance and legal risks associated with contingent labor, creating a safer, more efficient operational environment. This blueprint positions the utility for long-term success with a clear focus on sustainable workforce management and improved employee engagement.