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Future proof strategic partner for YIT to drive business transformation

Based on previous successful engagements with YIT, Melkki was invited to support the YIT IT leadership in defining the new strategic direction for the company.

Background & Challenge

YIT is the largest Finnish and a significant North European urban developer and construction company. YIT IT had a target to increase cost efficiency in IT operations, including the vision of being the industry leading IT function. The IT services were already largely outsourced using several partners.
As the building industry downturn prolonged and YIT business had severe financial challenges, finding a more cost-efficient partner through the initiative became increasingly important. A target was set to find a reliable long-term partner, who YIT could consolidate all IT operations to in order to reach the required savings, and support in the required business transformation.

Our Approach

The sourcing process was run in an agile manner consisting of both an RFI and RFS processes. The mode of operation included actively engaging and involving YIT IT, starting from definition of the sourcing strategy objectives in joint workshops. These objectives were kept updated during the processes based on the developments on the business side – YIT introduced a new CEO during the process.
Melkki team worked in active co-operation with the whole YIT IT leadership team, assuring the process was always run according to the client expectations and all parties were appropriately informed. Melkki assured that YIT IT had all the necessary data points available when decisions needed to be made. When the partnership contract was signed, Melkki team continued working in the transition management team to assure that the transition would go as smooth as possible.

Impact & Value Delivered

YIT has now one main IT service provider responsible for operations, adhering to end-to-end SLAs. Cost targets for the operations were reached. The strategic partner has committed to provide evergreen services, and continuously improve them through automation to assure they remain state of the art.
As the intention is to consolidate a large part of the future development activities to the strategic partner, YIT expects to receive benefits from more efficient development teams.

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