Overview
A $50B, F100 Global Retailer was undergoing a corporate initiative to update and transform their infrastructure and operations support model. In doing so, the client needed to identify, select, negotiate, and contract with an outsourcing provider for the following services:
- End User
- Application Hosting
- Network
- Common
- Security
- Application Maintenance and Support
Approach
UpperEdge supported the development of a holistic sole-source Negotiation Strategy for the client’s five (5) Towers of I&O services:
- Common Services
- End User Services
- Application Hosting Services
- Network Services
- Application Management Services
This negotiation strategy accounted for dedicated interactions with each Tower Lead to ensure all requirements were addressed. The client solicited a proposal from Cognizant to take over all in-house services related to those 5 Towers of Infrastructure Services.
Leveraging knowledge of the market and proprietary tools, UpperEdge’s team supported the Evaluation & Selection, Negotiation Preparation, Negotiation Execution, and Contracting process for the client. UpperEdge provided detailed analyses and vendor comparisons focused on driving out material proposal differences.
As a result, the client mitigated critical transition risks and optimized the overall commercial value of their resulting vendor agreements.
Negotiated Outcome
Leveraging UpperEdge’s fully developed, holistic sole-source Negotiation Strategy, the client achieved a Best-in-Class market deal for 5 Towers of I&O Services.
Deal Highlights:
- Facilitated a unified re-proposal RFP to reestablish leverage with preferred supplier and strengthen the supplier’s value proposition.
- Achieved 13.8% in negotiated savings, representing $28.8M in I&O savings over a 5-year term
- Secured an additional $4.2M in savings via negotiated deadbands to resource unit (RU) baseline volumes over term.
- Obtained up to $4.1M in volume rebates via tiered rebates based on annual spend.
- Ensured in-year and over-term reduced ARC/RRC tiered pricing valued at $200K-$2.1M based on actual RU volume fluctuations.
UpperEdge helps companies form strategic relationships with their IT Services partners and achieve best-in-class deals. Explore our IT Services advisory services to see how we can help you maximize the value of your key IT agreements.
