Taylor Wimpey - Case Study
Taylor Wimpey is a focused residential developer. It aims to be the developer of choice for its customers, employees, shareholders and communities. In 2010 Taylor Wimpey completed nearly 10,000 homes in the UK, ranging from one and two bedroom apartments to five bedroom detached houses.
Taylor Wimpey is one of the largest homebuilders in the UK operating from 24 regional offices across England, Scotland and Wales. They work at a local level, employing people from the areas in which they operate, but also benefit from the efficiencies (including shared experience and buying as a Group) of being a national company. They are focused on getting the basics right through actively managing their land portfolio and their supply chain (the companies who provide them with products and services).
With the downturn in the global economy and the weak UK economic outlook for the housing market severely affecting the performance of all the companies in the house building sector, Taylor Wimpey needed to ensure that every element of its business examined its cost base. From being a semi-fixed cost, IT spend needed to be reduced in line with decreased business activity; however Taylor Wimpey needed assurance that a revised and proposed contract extension with their principal IT service provider represented value for money.
Quantum Plus worked closely with Taylor Wimpey, with the full assistance of their service provider, to prepare an analysis of the costs proposed for the contract extension compared to that available elsewhere in the market. Breaking the services delivered into discrete service towers covering service management and service desk, applications management, infrastructure management and hosting, network management services and end user computing services, Quantum Plus used its market knowledge and database of unit costs to help Taylor Wimpey gain an appreciation as to whether the proposed extension represented value for money in terms of cost and service quality.
Taylor Wimpey has gained an assurance that their extended contract will provide value for money, and has obtained guidance as to which elements of their services may be priced above a reasonable market figure and therefore could be questioned during negotiation. Thus Taylor Wimpey’s negotiation position has been strengthened and the Board are assured that costs are justified.
“Taylor Wimpey got everything it wanted from this benchmarking study. With Quantum Plus’s help we will achieve a commercially competitive renewal based on a strong relationship with our supplier. Quantum Plus has worked closely with us at every stage of the process and provided market insight. The subject matter expertise they have contributed has been invaluable and we would not have achieved our goals without them”.