KMG International had been growing very fast in Romania and as a result the IT infrastructure was completely redesigned between 2005 and 2009. Over that period, however, IT costs ballooned. At its peak, the IT team swelled to 140 people who covered everything from development and testing through to day-to-day operations.
Cost reduction in order to increase profitability of the business became an imperative and so in 2010 the management team decided to restructure IT. Outsourcing the entire function seemed like a good proposal and so a contract was signed with an external organization that had been set up to provide all necessary IT services for KMG International. All the IT staff were transferred out and only one person remained within KMG International as a contact point for IT. The arrangements covered a flat fee plus change requests for any new projects.