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Horwich Farrelly Case Study
Transitioning your IT systems in the midst of a global pandemic, with all your staff working remotely is always going to be challenging, especially when you also decide to refresh nearly 750 laptop devices. Indeed, many would consider this a step (or two) too far.
However, this was the scenario that legal services firm Horwich Farrelly (HF) undertook during 2020, right at the start of the pandemic, and throughout everything that followed.
With so many pieces of ongoing project work taking place, the demand of having to equip and support the firm’s employees when they were away from their offices – many for the first time ever - meant that sourcing and future-proofing their laptop estate was absolutely critical. Where do you even begin such a process when everyone else is trying to source good quality equipment at the same time?
A strategic vision
HF had a strategic vision for a disciplined refresh of their IT. They also wanted a very high standard of hardware. The option of using a financing vehicle that matched the term of that planned refresh held appealing benefits for their CIO, John Presland. John was looking for a three-year refresh to ensure their equipment was always up-to-date and that staff felt they were being given, "the best tools to do the job".
Having set a high standard of hardware and adopted the strategic vision of a disciplined, regular refresh, John began working with the InnoVent team to map out his vision of a three-year refresh. It soon became apparent that a lease whereby InnoVent provided a residual value position offered HF cost savings over the useful life of the equipment; since there would not be an obligation to pay for 100% of the assets’ costs over a three-year lease term.
Having already purchased the equipment, being able to sell it to Innovent at its depreciated value (retaining its usage) and effectively receive a cheque back to the firm delivered a financial benefit straightaway. That release of capital could then be invested in other priorities for the firm, and away from investments in rapidly depreciating IT assets.
In addition, by utilising a leasing structure, HF will return the laptops to InnoVent after three years who will refurbish and reuse them in their 2nd Life lease programme. This delivers a circular economy approach, a win-win for both companies.
“Having the ability to release capital from assets that lose value so quickly and where we have a vision to replace them in three-years’ time made the InnoVent Sale & Leaseback proposition very appealing. That capital release and the leasing model helped us preserve our Fee Income, allowing us to spend money on other, more strategic, projects”
For a firm entering a leasing arrangement of its core technology for the first time, the ability to manage the financial liabilities and plan for the future meant having access to InnoVent’s Lease Asset Management Tool was important. InnoVent’s Complete Lease & Asset Management System (iCLAMS) is a proprietary web-based, all encompassing, asset management tool, that allows clients to manage a plethora of assets, from technology to vehicles, plant and machinery to medical equipment; the list is infinite. iCLAMS is subscription-based and supported by InnoVent.
With the financial benefits now matching their operational ones, HF is now on a journey to having a laptop estate that is both future-proof and fit for purpose for the next three years - whilst paying less money than they did before, to own the exact same types of equipment. Disposal and the accompanying refresh will mitigate most of the end-of-life obligations that come from ownership.
Adrian Saint, COO of InnoVent added that:
“Companies that have already paid for technology equipment are not excluded from obtaining the financial benefits of a lease. Understanding Horwich Farrelly’s strategy for refresh meant we were able to tailor a financial solution which met their needs, not just for today but for the medium and long-term”.