Transforming Application Maintenance Contracts at Santalucía


Transforming Application Maintenance Contracts at Santalucía

We facilitated the transformation of the company towards an agile operating model, incorporating design function and reinforcing the architecture

The Challenge

At the time of collaboration, Santalucía was involved in a plan to transform with an objective to evolve its IT operations towards a DevOps model. One of the pillars of the plan was named “business agility” and involved a renewal of application development and maintenance contracts. 
The main objective for Santalucía was to have more flexible contracts that would help it evolve its operating model and serve as catalysts for the transformation plan, introducing elements of agile sourcing. Eraneos was asked to help. 
In line with its transformation, Santalucía also sought to provide application management (AM) services with expert architecture and testing capabilities in order to improve the quality of developments. This would be another focal point for us. 

“We were looking for a contractual model that would allow us to move towards a DevOps transformation.”


The approach

In a collaborative work model, we defined the sourcing strategy for Santalucia’s new tender. This strategy was based on the company’s objectives for this service as well as the contracting policies of the company.  
In this first phase, we determined the scope of the services and the government model that needed to be adapted for a successful evolution of agile-DevOps methodologies. With this, we established the quality levels and billing models needed to allow for flexibility. In the same way, a supplier strategy was carried out to identify the best players for Santalucía based on the objectives and business context. In the second phase, this strategy was transferred to contractual documentation, including advice on the legal conditions. Likewise, the necessary support was provided to the suppliers during the response period. 
Finally, an exhaustive evaluation of the responses and collaboration were carried out in defense and negotiation sessions with the selected suppliers. 

Santalucía is an insurance company that has been protecting Spanish families for almost 100 years. It has seven million customers, a network of more than 400 agencies and sales offices, and more than 9,000 collaborators throughout Spain. Figures that place it in the top 10 Spanish insurers by volume of premiums.

The result

Santalucía now has contracts for the maintenance of applications, maintaining the structure of operational verticals for the next three years. These services have a corporate component serving different group companies. 
The signed contracts incorporate the flexibility to include new ways of working, tools, and technologies. Synergies were found in the supplier strategy by reducing their number, and government processes were simplified, including billing processes, which are now more adapted to an agile development model. 
At the quality level, work was carried out to simplify and improve agreed service levels. We also maintained conditions from previous contracts that had been consolidated as synonymous with good practices.

Let’s create sustainable change together.