Case Study |
Driving Cost Optimization
for PE-backed Lifestyle Brand

CLIENT

Mid-market
PE Firm

INDUSTRY

Retail / Apparel

CONSULTANT ROLE

Cost Optimization
Consultant

LOCATION

United Kingdom

The Challenge

Reducing High IT Costs

The client, a mid-sized PE firm, embarked on a cost optimization project with one of its portfolio companies, a UK lifestyle brand. The portfolio company had high overhead costs, in which 40% came from IT.

“The high costs were eating into the profitability of the portfolio company and hindering their ability to take on growth initiatives.” — PE Firm Operating Partner

The client sought a consultant to evaluate the existing cost structure and suggest actionable strategies to lower IT costs.

Role of Consultport

Consultport proposed 4 strong consultants within 48 hours. The client interviewed 3 candidates and selected an ex-Accenture Manager with extensive project experience in reducing IT costs. The consultant started working with the client team 5 days after the initial request.

Approach

Robust Cost Review

The consultant performed a detailed cost breakdown on the company’s IT operations and uncovered cost optimization opportunities for IT licenses.

“The focus on IT license costs was a strategic move to target areas that held the most potential for substantial cost reduction.” — Cost Optimization Consultant

Solution

Tailored Strategies to reduce IT costs

The consultant adopted Zero Based Budgeting to make costs transparent and integrate an ownership mentality at the portfolio company. Collaborating with the IT team, the consultant assessed license usage patterns, identified underutilized licenses and recommended strategies for future license negotiations and renewals.

Results

Comprehensive Implementation Plan

The consultant proposed a detailed implementation plan, highlighting concrete steps to reduce IT cost base by 15-20%. The plan was well received by the management team of the portfolio company and the PE partners.

Satisfied with the project outcome, the client offered the consultant a prolongation contract to support contract renegotiation and explore alternatives for lower-tier licenses.