The primary objective of this project was to consolidate multiple office rooftops for an ITes company into a single, efficient location. The aim was to reduce costs, optimize space utilization, and streamline operations. The project was executed in less than a year using RFI, RFP, and eAuction tools to finalize the vendors.
Background
The ITes company operated from multiple locations with varying rent rates and seat capacities:
- Location 1 (Builder 1):
- Rent: Rs 66 per sq.ft.
- Area: 15,893 sq.ft.
- Seats: 125
- Location 2 (Builder 2):
- Rent: Rs 38 per sq.ft.
- Area: 15,437 sq.ft.
- Seats: 140
- Location 3 (Builder 3):
- Rent: $500 per seat
- Area: 22,000 sq.ft.
- Seats: 190
The new consolidated location offered significant benefits:
- New Location:
- Rent: Rs 28 per sq.ft.
- Area: 79,150 sq.ft.
- Seats: 535
- Cost Saving: $2.5 million
The consolidation involved moving teams from Business Line 1, Business Line 2, and others into a single location, simplifying the supply chain and reducing operational costs.
Methodology
The project followed a structured approach, leveraging RFI, RFP, and eAuction tools to select the best vendors for the consolidation:
Define Phase
- Scope Definition: Team- and function-wise business impact metrics were created keeping the end customers in mind.
Measure Phase
- Baseline Analysis: Evaluated current rent, area, and seat capacities across existing locations.
Analyze Phase
- Vendor Selection: Used RFI, RFP, and eAuction tools to finalize vendors based on cost, capability, and service offerings.
- Requirement Consolidation: Combined requirements to leverage volume benefits.
Improve Phase
- Space Optimization: Planned the new space to accommodate 535 seats across various business lines (GEHC, Infra, CIS, NBCU).
- Project Management: Weekly calls with the project manager ensured timely progress and addressed any issues promptly.
- Ordering and Execution: Placed a total of 28 purchase orders for major parts and services, including workstations, IT infrastructure, air conditioning, lighting, and false ceilings.
Control Phase
- Operational Mechanism: Implemented a robust project plan with a move-in date of June 15th.
- Continuous Monitoring: Monitored progress with three shifts operating 24×7 to ensure timely completion.
Outcomes
The rooftop consolidation project led to significant improvements and efficiencies:
- Cost Savings: Achieved $2.5 million in cost savings due to reduced rent and optimized space utilization.
- Operational Efficiency: Streamlined operations by consolidating multiple locations into a single site.
- Enhanced Work Environment: Improved workstations, IT infrastructure, and overall office environment for 535 employees.
- Productivity Gains: Achieved annualized productivity savings of $300K through improved operational efficiencies.
Key Milestones Completed
- Workstations and IT Infrastructure: Major parts ordered and installed.
- Facilities Setup: Air conditioning, lighting, and false ceiling work completed on-site.
- Shift Operations: Three shifts operated 24×7 to ensure project completion within the stipulated timeframe.
- Long Lead Time Items: Ten long lead time items were ordered and received as planned.
Conclusion
This case study demonstrates the effectiveness of rooftop consolidation in reducing costs and improving operational efficiencies for an ITes company. By leveraging RFI, RFP, and eAuction tools, the project successfully consolidated multiple locations into a single, optimized site in less than a year.
Acknowledgements
The successful implementation of this project was due to the collaborative efforts of the sourcing, project management, and procurement teams, who worked diligently to ensure timely completion and cost savings.
Future Plans
Building on the success of this project, the organization plans to:
- Further optimize office space utilization in other regions.
- Continuously review and improve vendor selection processes using advanced tools.
- Enhance collaboration with suppliers and service providers to achieve sustained cost efficiency and operational excellence.
