Consolidation is hard, and some disruption is inevitable, but when it’s done right, the benefits are real. First American Title estimates $5 million in annual IT savings, with a total of $100 million in annual savings and revenue due to accelerated business processes. “We’ve integrated our lenders’ systems into our centralized system so we can have all the lenders’ instructions in before closing. Before we had to kill time feeding the family cookies in the waiting room while the escrow officer was still scrambling to acquire, key, and print the most up-to-date, final information. None of our competitors can do this.”
Statistics Canada estimates savings of $2.9 million in the first four years, and despite massive storage growth from a recent census, it has had to hire only one more full-time employee. Unisys estimates shaving $50 million out of the run-rate cost of IT operations, while TRW and First American were able to use saved space and decommissioned servers to build a first-rate disaster-recovery infrastructure.
Perhaps the most dramatic benefit, however, is agility. “After we realized how much more agile we were, and how successfully we had made all the changes, we became much more creative and confident about what we could do,” TRW’s Drouin says.