Publish Date

Jun 01, 2020

Pivot to Savings: How IT Can Be an Agent of Change in Cost Control for Faster Recovery

Jeff Shaffer, Managing Director | Raj Thangavelsamy, Senior Director

Service / Industry: Technology Services

As Private Equity sponsored companies pivot to recovery coming out of the COVID-19 crisis, the chance to re-design business models and business processes are a hidden benefit. Information Technology (IT) will be an agent of change, playing a significant role in cost controls and process re-design. A key element of this re-design will be companies’ ability to reduce fixed commodity-type process activity costs and replace them with automation in a variable, consumption-based model. With human capital identified as the largest expense for most companies, automation provides a mechanism to control this cost while not wrestling away value-added activities. What is different today versus prior situations is that benefits can be achieved with minimal upfront cash.

Before companies can take advantage of an automated variable consumption-based model, they need to get their house in order. At A&M, we see a stair-step approach for IT to lead and support the move to the “next normal” (born of the COVID-19 crisis) and encompass the three steps of remediation, data transparency and “Hyperautomation”.

Read the full article to learn how technology automation tools can drive cost controls for companies re-assessing their operations overhead.

Jeff Shaffer

Jeff Shaffer is a Managing Director with Alvarez & Marsal’s Private Equity Services Group in Los Angeles, specializing in pre and post-acquisition IT and operations assessment and integration.

Raj Thangavelsamy

Raj Thangavelsamy is a Senior Director with Alvarez & Marsal’s Private Equity Services practice in New York. Mr. Thangavelsamy is responsible for driving robotic process automation (RPA) services within the Private Equity Services group at A&M.