Building Internal Capability to Drive Sustainable Growth
Industry
Automotive
Services
Technology Modernization, Operating Model Optimization
By strategically insourcing critical functions, the organization reduced external dependency and created a stronger foundation for long-term success.
Opportunity
A major automotive OEM sought to evaluate which program functions should be owned internally versus managed by third-party vendors. The client wanted to challenge traditional outsourcing assumptions and build greater ownership of the capabilities, knowledge, and processes most critical to business success.
Having become increasingly dependent on a vendor, the client recognized that its existing outsourcing model had become a strategic constraint. By partnering with Two Roads, the organization aimed to reduce costs, gain greater control over data and customer-facing experiences, and build the internal capabilities needed to support long-term growth.
Outcome
90% Reduction in Dealer Support Tickets
Enhanced the dealer experience by reducing technical issues and support needs following the migration across three program areas.
$10M+ Reduction in Year One Costs
Delivered significant cost savings while avoiding additional headcount and preserving service quality.
Expanded Internal Capabilities
Improved data quality, support responsiveness, and long-term flexibility through greater control of critical business functions.
1,200 Dealers Migrated
Transitioned dealers to an internally managed data platform with zero disruption to operations.
Approach
To help the client make informed sourcing decisions, Two Roads evaluated critical business functions through the lenses of cost, operational risk, customer impact, and organizational capability. The team developed a roadmap for strategic insourcing that balanced immediate business needs with the long-term goal of building internal expertise and ownership.
Because vendors were deeply embedded across business, technical, and dealer-facing operations, the client lacked a structured approach for evaluating insourcing opportunities and executing the transition.
Drawing on its expertise in vendor strategy, operating model optimization, and capability building, Two Roads developed a repeatable decision framework to assess opportunities based on strategic importance, internal capability, and total cost of ownership. The team also developed executive business cases that quantified value, aligned stakeholders, and established a clear roadmap for execution. The initial technology management transition was completed in approximately nine months, while additional program and vendor management insourcing efforts continue to be implemented through a phased approach.
Rather than stopping at recommendations, Two Roads partnered with the client through implementation, leading vendor coordination, transition planning, stakeholder communication, and governance across multiple program areas.
The framework continues to guide future insourcing decisions, enabling faster implementation and delivering measurable business value with each successive application.
Authors
Blake Boyer
Senior Associate
