© 2011 Sixhills Consulting LtdIn an client engagements representing an indirect expense base in excess of $30bn, the Aggressive Sourcing approach generated average savings of 18%, with higher average savings in some categoriesExperience by Expense Category*Indirect ExpensesHR RelatedExpense Base$ MM% SavingsNumber of StudiesEquivalent Consulting Years4,114 17%7684Temporary Services1,88116%3942Health Care4866%1521Non-Health Care Benefits1,65521%1012Other HR Expenses9316%129Totals:Expense Base$ MM% SavingsNumber ofCategories AddressedEquivalent ConsultingYears32,26518%8881,035Information TechnologyExpense Base$ MM% SavingsNumber of StudiesEquivalent Consulting Years11,04217%324383Telecoms3,86316%110134Distributed Computing2,88723%108102Contract Programming1,48816%2244Mainframes1,12518%2127Other Tech Services1,18310%3336Software49615%3040OverheadExpense Base$ MM% SavingsNumber of StudiesEquivalent Consulting Years6,928 17%214214Travel and Entertainment2,16214%5263Professional Services1,62910%1527Paper & Supplies1,21828%4534Office Equipment49331%4130Distribution42616%3449Other Overhead1,00018%2711Marketing & AdvertisingExpense Base$ MM%SavingsNumber of StudiesEquivalent Consulting Years5,417 20%139188Direct Mail/ Commercial Print2,59823%87111Advertising1,083 13%1536Other Marketing1,448 20%2729Agency Compensation248 18%810Advertising Production40 18%22BusinessSpecific & Cost of Goods SoldExpense Base$ MM%SavingsNumber of StudiesEquivalent Consulting Years3,01720%102133Business Specific2,52320%94125Cost of Goods Sold49420%88Facilities&InfrastructureExpense Base$ MM% SavingsNumber of StudiesEquivalent Consulting Years1,74718%7474Contract Labour72728%3035Facilities and Infrastructure59813%2825Alteration/ Capital Improvement2449%66Equipment & Supplies17812%108*Updated as of January, 2001Aggressive SourcingP2
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