Offshore D365 managed service reduces costs by over 50%.

The challenge

A FTSE 250 business was running its Microsoft Dynamics 365 estate on a UK-only managed service that had become both expensive and slow. Roadmap items sat in the backlog. SLAs were being missed. The board needed both cost reduction and operational uplift, and they needed them on the same engagement.

• UK-only managed service with rising headcount and rising cost-to-serve.
• Backlog of D365 improvement work that the day-to-day team could not get to.
• SLAs being missed during peak operational periods.
• Investor pressure on the IT cost line.

Our approach

We rebuilt the managed service around the AI Factory operating model. Senior UK-led oversight; delivery from our wholly-owned India centre at 85% utilisation; agentic AI handling ticket triage, automated regression testing, and on-call assistance.

The cost saving came from the offshore-onshore mix and the AI augmentation on steady-state work. The performance uplift came from freeing senior engineering capacity to actually progress the backlog.

What we delivered

An AI-led managed service that runs the D365 estate continuously, with the cost reduction settled against the original investor case.

• Resourcing cost reduced by more than 50% within the first year.
• SLA performance lifted ahead of pre-engagement targets.
• Backlog of D365 improvement work cleared and converted into a continuous improvement programme.
• Benefits realisation tracked and reported to the board quarterly.