Deloitte Operate Services · 5 | Deloitte Operate Services A deep-capability skills gap For companies to compete in a digital world, and elevate customer experience, they need to

Deloitte Operate ServicesEmbrace a more agile way of doing business

Digital disruption is redefining how organizations do business. Never before has there been such a convergence of exponential shifts in people, processes, and technology. And, organizations that need to scale operations, accelerate innovation, drive efficiencies, and expand expertise to better focus on their core competencies are turning to more agile ways of doing business.

They need a trusted partner who can bring differentiated advice, skills, and assets within a partnership model that is equally agile and flexible.

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Evolving needs in a rapidly changing world

Rapid technological changes, coupled with a data tsunami that brings new business opportunities and shifts in buying behavior require innovative solutions and new, more responsive business models.

Organizations today are facing unprecedented challenges resulting from ever-evolving technologies where continuous innovation to sustain and enhance competitive advantage is needed; rapid deployment of new expertise and seamless management of IT operations requires close collaboration with all stakeholders; and, where automation to reduce costs and risk, while increasing efficiencies, is essential.

To get ahead, companies must adapt and move quickly, leaving behind yesterday’s rigid operating structures to embrace more agile ways of doing business.


Maintaining outdated and inflexible systems comes at a price. Obsolete code and inefficient processes drive up costs. Vulnerable applications and reactionary support systems limit a workforce’s potential to innovate. And, this monolithic enterprise limits the ability to integrate new innovations like analytic and cognitive tools, Robotic Process Automation (RPA), and cloud solutions that allow organizations to be nimbler and more capable of quickly responding to situations that impact costs and their competitive advantage.

The shift to fast-flow IT, leveraging methodologies such as DevOps and Agile, is sparking a culture of creativity and continuous innovation. To fully capitalize on these benefits, not only requires a move to new technology, but also a reimagining of IT operations and a shift in the business model. More dynamic, flexible contracting models that better align to changing business priorities, demands, and disruptive innovations are replacing the long-term, fixed (scope and price) contracts of the past.

Don’t let technical debt hold a good company back.

Yesterday’s technical debt

Yesterday’s cutting-edge solutions have become today’s technology debt, resulting in high costs and reactive IT delivery organizations. State-of-the-art transformations have slowly become archaic, until organizations feel trapped by their CapEx intensive investments in aging infrastructure and technology.

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What's driving new buying behaviors?

Copyright © 2019 Deloitte Development LLC. All rights reserved.

5 | Deloitte Operate Services

A deep-capability skills gap

For companies to compete in a digital world, and elevate customer experience, they need to leverage data from a myriad of sources, define a differentiated path, and execute it seamlessly—all within a rapid timeframe and mitigated risk. Many businesses can’t respond and scale fast enough, lacking the talent to do so from either a technical or industry perspective.

There are quantifiable impacts of insourcing talent:

• New opportunities and/or disruptive technologies are not well understood, thereby reducing top-line revenue growth.

• Global supply chain reach and access are limited, escalating costs.

• Lack of speed in responsiveness and delivery of services decelerates market leadership opportunities.

• Dated security expertise creates risk and opens up the potential for breaches.

Today’s gig economy workforce is rapidly changing and automation, workforce augmentation, and machine learning are redefining the way work is done. Operating differently requires establishing new team structures and introducing resources that have deep expertise in areas that not every company has invested in or developed.

These teams offer new skills to accelerate speed to market, and supplemental skills that allow existing teams to perform more strategic work, both capable of producing not only core, but also differentiated value.

To keep up with the pace and rate of change, these deep-capability teams need to be quickly ‘stood-up’ and operationalized, finding the balance between a set of established resources that bring organizational experience and a variable capability that can respond to new business needs. These new teams can also bring market-proven methods, best practices, tools, and accelerators to the table that can provide immediate efficiency and elevated value.

Speed to market is everything.


Today’s technological evolution is gaining speed exponentially. Organizations that link their strategy to long-term CapEx-intensive investments:

• Don’t have the agility to take advantage of new innovations, thus limiting top- and bottom-line economic impact

• Aren’t in a position to shift talent and financial resources toward new capabilities, thereby limiting their capacity to open up new markets or opportunities

• Can’t de-couple components leading to a highly dependent broader set of long- term licensing, infrastructure, and support obligations

Companies who want the ability to change quickly, often seek out the ability to ‘rent’ what they need to meet today’s business demands knowing that tomorrow may bring a new set of opportunities. Time-to-value accelerates all the aspects of innovation–infrastructure, licensing, implementation, support, and surrounding services–and are often packaged and seamlessly included in a consumption-based economic model. Just as consumers are flocking to movie, book, and music subscription models, companies are looking to “as a service” models that can deliver continuous innovation and improvement, without the burden of high-dollar, CapEx investments.

There needs to be more agility to the solution.

Less reason to own in a short-term, digital world

Historically, integrating new transformative technology and innovations required significant up-front capital investment. Implementing new systems, platforms, and applications came with an ownership model that not only required a strong, multi-year business-case justification, but also the understanding that the company would be bound to that decision long term, even as technology continued to evolve, even as new opportunities emerged, and the organization was getting left behind.


The status quo is not an optionRelying exclusively on rigid, legacy technologies and operations, limited in-house talent, and low adoption of innovative assets within an inflexible business model is an old-school strategy.

Companies should consider moving away from long-term investments in systems and fixed-scope partnerships toward as-a-service, consumption-based infrastructure and resourcing where they are paying for only what they use. And, businesses are being transformed by the ability to institute outcome-based models, where the economics of the service are tied to the business imperatives they are impacting, or self-funding models where savings are automatically directed into innovations and new enhancements.

Disruptive solutions are challenging traditional models that are failing to deliver greater innovation, improved performance, and increased speed to market. Organizations must be able to leverage speed, cost, quality, and risk. Traditional contracting, in-house talent, and aging technology simply can’t keep up.

A better path forward

A flexible relationship with a market leader like Deloitte can help accelerate quality and speed to market while potentially reducing costs. In the past, working with outside partners had the primary goals of cutting costs and improving back office service. However, today’s solutions are about integrating services within a balanced cost model that cannot be quickly build on its own. Relationships are now a longer-term construct built on flexibility and performance.


Deloitte’s Operate Services enable us to serve as an extension of your organization. We bring deep capabilities in advising, maintaining, and enhancing technologies and delivering insights across flexible economic models.

We combine the industry and technical knowledge and experience of our team members with innovation and technology to positively impact your company’s quality and costs. And we do it all within a flexible contracting construct to help align:

• Costs to consumption and evolving needs

• Services to realized outcomes

• Engagement accountability to a truly collaborative relationship

Our Operate Services include specialty-centric and technology-centric offerings in new types of solution collaborations that are scalable, flexible, and typically structured by subscription, outcome/output, or labor resources used. They take on either a traditional (largely people-based) model or hybrid (asset/platform-based) model.

Deloitte Operate Services


Traditional Operate Services

On-going SupportSpecialized Talent

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Need us to run your technology, even re-imagine it?

Application Management Services provide break-fix maintenance, monitoring, and optimization services for your organization’s technology applications and platforms in a predictable manner with service level assurances. We can help optimize, run and manage your systems, platforms, and applications, often following an implementation or transformation project. We use automation to help enhance tasks, reduce delivery costs, improve quality, and increase efficiency.

Take this case in point. A major health care plan provider wanted consistent delivery organization-wide of its analytics solutions that would use a common set of approaches and tools accompanied by interactive reporting. Deloitte scaled support from 70 to 450 people, improving delivery, quality, and reliability of analytics services and ultimately reduced total spend per function by 65%.

Need us to help scale resources strategically?

Foundry Services bring a flexible and fluid capacity model to the delivery of small technology projects and enhancements. These services provide the ability to scale project talent resources up and down with demand and allow an organization to react nimbly to key business needs while minimizing the impact on ongoing operations.

Take this case in point. An oilfield services company wanted to improve its IT project management services to its businesses with improved processes, increased consistency, higher retention of talent, and lower cost. Deloitte established a 3-tiered resource model team construct that provided for both fixed and flex capacity to meet the chang-ing needs of the business across the portfolio of IT projects while introducing an offshore shared services team to lower cost and deliver service performance measurement and reporting to the business.

Need subject matter specialists that know your organization?

Advise-as-a-Service couples deep subject matter knowledge and experience with talent resource consistency via a retainer model to inform and produce outcomes and recommendations. Using time-tested methodology, our subject matter specialists facilitate insights and produce outcomes and recommendations.

Take this case in point. A large, global pharmaceutical company wanted to help design high-impact learning offerings that would be delivered to their global workforce. Deloitte used a Learner Experience Design subject matter advisor (SMA) team to design top-notch user experiences and programs to engage the company’s workforce. An onshore/offshore model was used to achieve cost-effectiveness and productivity.


Hybrid Operate Services

Pre-built Assets

Need ongoing, optimized, and insightful analytics and information management capabilities?

Analytics-as-a-Service delivers ongoing analysis and insights, leveraging OpEx tools and platforms with a consumption-based pricing model that is aligned to outputs. In addition to providing data analytics in an as-a-service model, we provide ongoing support for interactive applications tied to the data. This service leverages Deloitte-owned IP, assets, and our network of subject matter specialists for enhanced visibility into data and greater speed, consistency, and quality of data analysis.

Take this case in point. A global airline with more than 100 million customers was missing profitable customer engagement opportunities. Executives believed that the latest data science could help harvest these opportunities.

Deloitte co-developed an analytics platform solution and supporting services, increasing the new customer acquisition rate by 82% and decreasing cost-per-acquisition during live market testing by 28%. The solution also identified opportunities that, if implemented, were reliably predicted to improve brand satisfaction by over 50 percentage points.

Need us to manage and run a business process function or service?

Business Process Enablement Services supply the value-driven, ongoing management of business processes, often enabled by market-differentiated assets within a bundled, utilization-based construct. Our specialists manage, monitor, and execute a portion or the entire business process that requires a unique skill set, bringing new capabilities, technologies, and accountability to the services we deliver and potentially reducing costs.

Take this case in point. A consumer products company wanted to outsource the development of its human capital platform and then enable ongoing Talent Enablement Services. Deloitte was selected to bring our services and hybrid product experience to help the client enhance and sustain its new HR operating model and create a customer-centric approach. Deloitte not only accelerated the company’s speed-to-value, but also allowed for flexibility to scale as its workforce grows, bringing to light sector-specific insights related to the seasonal population, and changing workforce dynamics in food production.

On-going SupportSpecialized Talent

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The Deloitte difference

With our fingers on the pulse of companies' evolving needs for data, advanced technologies, and new engagement models, we deliver a full suite of Operate Services that have the potential to transform organizations.

Our team members are passionate about problem solving and committed to helping organizations lead amid today’s increasingly complex market dynamics, competitive pressures, and disruptive forces.

With decades of deep industry knowledge and technology experience, we develop a clear roadmap for achieving results that establishes the business outcomes organizations want to achieve, and the technologies and processes needed. We combine the governance, security, and scalability measures required to maintain data and systems for the future.

Backed by a team with thousands of specialists, the assets and tools we use are flexible and system agnostic. Our comprehensive team of industry specialists, consultants, technologists, data scientists, and practitioners gives us an edge in helping organizations move the insights gleaned from data into action tied to transformative business results. We make significant investments in our people so they are not just current, but forward-thinking in relevant and agile ways.

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worldwide delivery centers

35,000+professionals

worldwide

28greenhouses and innovation labs


If the goal is to move your company to a more agile business model and increase its competitive advantage through strategic sourcing models, we should talk.

Ayan ChatterjeeNational Managing Principal Operate Services Deloitte Consulting LLP

[email protected]

Sherry AllenManaging Director Operate Services Deloitte Consulting LLP

[email protected]


This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.


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Deloitte Operate Services · 5 | Deloitte Operate Services A deep-capability skills gap For companies to compete in a digital world, and elevate customer experience, they need to