Case Study: GEWOFAG achieves 25% process cost reduction and an informed make-or-buy decision with Software AG (IDS Scheer Consulting)

GEWOFAG reduces process costs by 25 percent

GEWOFAG, a Munich social-housing provider that manages about 30,000 units with roughly 600 employees and group assets of ≈€1.1 billion, needed an objective expert opinion on whether to keep maintenance services in-house (its 60-strong technical workshops) or outsource them. The challenge was to determine which option was more cost‑effective while maintaining service quality.

IDS Scheer Consulting extracted and validated a full year of SAP data, ran a contribution‑margin comparison using market hourly rates, and used ARIS Business Designer plus workshops to map as‑is and to‑be processes and identify optimization opportunities. The study found in‑house maintenance to be both cheaper and higher quality, enabling a roughly 25% reduction in process costs, a multi‑million‑euro management decision to retain heating/cleaning/electrical/carpentry/gardening services, preservation of about 60 jobs, and consultant fees equal to ~3% of the decision value (≈11% of potential savings).

GEWOFAG

Sigismund Mühlbauer

Head of GEWOFAG’s GB02 department