Improving Productivity and Reducing Costs in an IT Service Provider: Applying the Lean Six Sigma Methodology

Objective: to present the use of the Six Sigma framework as a framework for IT Governance, in a multinational company that operates in the market of IT outsourcing services, with a view to assisting in the improvement of productivity, in its consequent significant reduction of costs and a better operational performance in the processes of the company providing outsourced IT services. Theoretical Framework: The study addresses concepts of the Lean philosophy, as well as the Six Sigma framework and the marriage of Lean and Six Sigma as a way to obtain advantages from the application of its methods, meeting the needs of the organization. Method: In this study, quantitative and qualitative methods were used from a descriptive research. A literature review and associated issues were carried out and a case study was applied from the results obtained through a project in a large multinational company that provides IT outsourcing services. Outcome and Discussion: The combination of Six Sigma with the business process offered the company an opportunity for cost reduction and improved its competitive advantage in an increasingly competitive and quality-driven market. Regarding the implementation of the incident governance process, a reduction of 24% was obtained; Regarding actions to reduce the number of overtime, a reduction of 40% was obtained. A total monthly reduction of US$ 5,589 was obtained and annually the reduction amount plus benefits reached US$ 67,068. Research Implications: Research contributes to the improvement of quality and significant cost reduction with the application of the Six Sigma framework, properly tested and demonstrated in an organization. Originality/Value: This study contributes to the literature by using the Six Sigma framework as a framework for IT Governance in order to help improve productivity with consequent significant cost reduction and better operational performance in the processes of an outsourced IT service provider. The relevance and value of this research are evidenced by the demonstration of the benefits obtained in the environment of the company under analysis.