Optimizing a healthcare provider’s IT strategy saves $400M+

Our healthcare client initially aimed to cut costs by outsourcing a narrow set of IT functions. West Monroe broadened their approach by re-envisioning their IT operating model, emphasizing scalability and effectiveness across multiple areas. Through a holistic approach, we clarified the need to retain business-critical functions in-house while outsourcing more operational tasks. This allowed the client to simultaneously target key pillars, from telephony to supplier agreements. Our tailored approach delivered immediate efficiencies, providing a robust, scalable IT framework that continues to support sustainable operational improvements.

Our team, blending deep healthcare and IT expertise, partnered with the client over 25 months to redefine IT operations. We initiated a phased approach—first targeting organizational design, then moving into managed service providers (MSPs) for key service functions, and establishing a Vendor Management System (VMS) to optimize contingent talent. By unifying supplier agreements and creating a streamlined vendor ecosystem, we standardized pricing, improved role definitions, and created measurable efficiencies. This end-to-end collaboration achieved sustainable, forward-looking improvements that elevated the client’s IT capability and controlled their contingent workforce spend.

With West Monroe’s guidance, our client transitioned from high operating losses to a forward-looking IT strategy, saving over $400 million. Consolidating suppliers and reimagining their contingent talent framework drove significant cost reductions, enhanced service level agreements, and improved vendor management. Telecom expense management added $75 million in savings, while optimizing contingent talent saved $50 million more. The newly efficient model provided critical insights into spending patterns, aligning IT investments with business goals. This transformation not only optimized current operations but also created resilience and scalability, empowering the client to confidently navigate future needs in an evolving healthcare landscape.