F100 Retailer Reestablishes Leverage with Preferred IT Provider to Achieve 13.8% or $29M in Negotiated Savings

An IT Services Infrastructure Management Case Study

Client Profile

A Global $36B F100 Apparel and Home Fashions Retailer

Business Issue

  • Corporate initiative to update and transform infrastructure and operations support model
  • Company built business case to reduce OPEX through outsourcing the support of infrastructure and application support
  • Needed to identify and select an outsourcing provider for end user services, help desk, hosting, network, security and application support services

Services & Results

UpperEdge assisted in developing and executing a holistic sourcing and negotiation strategy to ensure market favorable commercial terms supporting its business case for the transformation:

  • 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 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