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Powell Relocation Group benefits from IT Support Contract

IT Outsourcing

BUSINESS CHALLENGE

Powell Relocation Group (PRG) is a Moving & Storage company with locations in Grand Rapids, St. Joseph, and the Chicago Land area. The growing company has 40 Employees and over 75 moving trucks.  “The moving business never stops,” says Owner/COO Greg Wing.  PRG has been growing steadily year after year, adding locations and services every couple of years.  As the company grows, so too does the IT requirements” says Mike Frey, Partner/IT Consultant with K/HC, “Powell reached a point were they needed to hire a larger, more knowledgeable IT Staff, or make the choice to outsource.”  For Powell, the choice was easy.  They knew their business was the moving and storage business, so they turned to K/HC to handle all of their IT matters.  “Outsourcing our IT needs to K/HC was one of the best moves we ever made.” says Wing.

 

OUTSOURCING SOLUTION

“Based on PRG’s business needs—Control costs and keep up with growing IT requirements—we recommended a Block Contract that gives PRG access to our entire IT staff.  We also implemented technology that allows us to service the branch offices remotely, saving them both time and money” says Mike Frey, “Now, when PRG has an IT need, they simply call us up and the appropriate technician for the job is either deployed to the job site or handles the need from wherever he’s at.  PRG gets a monthly report of the hours they used so they can track their usage and plan ahead for the next month.”

 

BUSINESS RESULTS

Instead of hiring in-house IT staffers, outsourcing has allowed PRG to contain payroll and healthcare costs associated with those would-be new employees.  Furthermore, existing employees who were depended upon to deal with computer/network issues are now free to concentrate on their REAL objective, namely serving their customers’ relocation needs.  “By outsourcing to K/HC, we are able to focus on our core business and provide our customers a better experience” says Wing. “When we have an IT need, what ever it is, we call one phone number and the IT experts at K/HC take care of it.” 

Prior to outsourcing, Powell’s IT in-house staff had limitations, and as a result, the company was held back from implementing certain solutions that would improve business processes and contribute to the bottom line.  By outsourcing, PRG has been able to leverage K/HC’s wide array of IT talent.  “We don’t simply install technology” says Frey.  “We work with our clients to understand their needs within the context of their business goals, and implement appropriate IT solutions to facilitate achievement of those goals.”

As a case in point, greater management control coupled with recurring cost savings were realized when K/HC implemented VPN technology, enabling PRG to route its network traffic to-and-from remote branch offices over the Internet rather than maintaining expensive point-to-point leased line connections.  Now, issues at the branch locations can be resolved in a matter of minutes rather than hours or days - at a fraction of the cost. 

 

Executive Summary

· Powell Relocation Group

· Moving and Storage

· Headquarters—Grand Rapids, MI

· 2 branch offices, 50 employees

 

Business Challenge

· Control Employee related expenses

· Absorb newly acquired subsidiaries

· Overcome lack of IT expertise

 

IT Outsourcing Solution

· Service Contract with K/HC

· Remote Network Management capability for branch offices

 

Business Results

· Containment of overhead costs due to increased productivity, enabled by better utilization of IT resources

· Cost savings due to IT support contract at discounted rate

· Greater management control over branch offices through database consolidation and increased information sharing

         Mike Frey                 Greg Wing

     Kore / Hi Com     Powell Relocation Group

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