How Sprint Nextel Reconfigured IT Resources for Results.

Abstract

Following the merger of Sprint and Nextel, the merged IT organization reduced costs by $424 million more than a year ahead of schedule. These cost savings stemmed from a reconfiguration of IT resources that reduced both annual IT operational expenditures and capital IT expenditures. To facilitate the reconfiguration, Sprint Nextel IT leaders applied new and proven practices—a program management office, application rationalization, insourcing, multichannel communications, and thoughtful human capital management.\nThe way in which Sprint Nextel IT achieved its IT merger goals adds significantly to our understanding of mergers. Even more importantly, though, it exemplifies how Sprint Nextel developed an IT resource reconfiguration capability. Sprint Nextel’s experience provides insights into how IT leaders can build such a capability, which is crucial for today’s turbulent business environments.

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