F200 Automotive Retailer Standardizes Global Services Desk With 25% in Negotiated Savings Representing $13.2M over a 5-Year Term

An IT Services Infrastructure Management Case Study

Client Profile

A Global $15B F200 Automotive Retailer

Business Issue

  • Company’s IT services desk was decentralized and highly customized globally and by region
  • Desired to standardize and centralize IT service desk across the enterprise
  • Sourcing team issued an RFP and identified a preferred supplier but required assistance in sole source negotiations of commercial and contract terms

Services & Results

UpperEdge assisted in developing and executing a holistic sourcing and negotiation strategy with the supplier to ensure market favorable commercial and contractual terms supporting the business case:

  • Facilitated mark-to-market benchmarks of unit pricing, SLAs, and commercial terms to establish leverage with preferred supplier and to strengthen the supplier’s value proposition.  Obtained favorable and highly favorable commercial terms supporting the contract
  • Achieved 25% in negotiated savings representing $13.2M in IT service desk savings over a 5-year term
  • Secured additional price protections valued at $500K via a negotiated 3-year rate lock
  • Ensured mid-term 6% unit price reduction in service desk pricing reflecting productivity improvement commitments from supplier