Case Study

UST managed services saves grocery retailer $8.7 million in IT spend over 17 years

UST used an ITIL approach to provide application production support for this regional American grocery store chain. In the last 17 years, the managed services team has replaced at least 210,000 hours of manual work with automations.


Founded over a century ago, this privately held American grocery retailer operates approximately 425 locations, generates nearly $40 billion in annual revenue, and donates millions of dollars yearly to its communities.


Production application support for fast-growing regional grocery retailer

In 2006, the company’s internal IT team managed 145 production applications, such as Oracle ATG Web Commerce, Oracle PeopleSoft, Informatica, and WordPress. The company wanted to outsource application management to a seasoned technology vendor that could provide 24x7 support for incident and problem management, system monitoring, and service requests. The grocery retailer also wanted the tech partner to help streamline its application landscape with automations.


A best-practice managed support engagement does more than “keep the light on”

Using an offshore development center (ODC) model, UST deployed 55 tech experts to work around the clock to help the retailer manage its 145 core production applications. The team implemented an information technology infrastructure library (ITIL) to align IT services with the retailer’s business needs, including:

In addition, UST implemented an effort to automate manual processes; manage the toil of repetitive, low-value tasks; and identify root-cause issues and fixes. A shared learning initiative has also helped elevate the company’s internal IT team’s competencies by digitizing knowledge transfer documents and offering knowledge sharing sessions, site reliability engineering (SRE) trainings, and certification trainings for retail, AWS, GCP, and various compliance policies.


Successful 17-year engagement saves 210,000 manual work hours across 245 applications

Now—more than 17 years later—UST’s team of 250 managed services associates supports the retailer’s application footprint of 245 applications. By implementing root cause fixes and automations, UST replaced 2,100 hours of manual tasks, reduced tickets by 11,500, and saved $712,000 in FY 2022 alone.

Meanwhile, since the start of the engagement in 2006, UST has helped the company save at least 210,000 manual work hours, which has contributed to a savings of $8.7 million in IT spend.