An IT Services Application Management & Support Case Study

Global Retailer Selects AMS Provider and Saves >10% With Best-in-Class Agreement and Waiver of Transition Fees

A soft focus, blurred background of a contemporary retail clothing store, showcasing racks of apparel, display tables, and a bright, spacious environment, ideal for conveying shopping or commercial

$500K

5-Year Savings

>10%

Cost Reduction

$500K

Additional Credits Secured

±10%

Ticket Volume Flexibility

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Client Profile

  • A $5B Worldwide Shoe and Accessory Retailer

Business Issue

  • Company embarked on a transformation project implementing SAP ERP
  • Desired to build an AMS capability for the SAP ERP systems which leveraged the capabilities of a third-party AMS provider
  • Engaged UpperEdge to initiate the evaluation and selection processes and negotiate the most beneficial and highly competitive agreement

Services & Results

UpperEdge assisted in developing and executing a holistic negotiation strategy, advising at the executive level on program approach and sourcing strategy:

  • Assisted company in identifying appropriate RFP participants with demonstrated capabilities to support AMS needs and facilitated an RFP to evaluate, select and contract AMS services
  • Negotiated a best-in-class commercial construct that achieved > 10% reductions totaling $500K over the 5-year term
  • Secured additional credits of $500K with a waiver of 100% of transition fees totaling $300K and an additional $200K in relationship investments
  • Ensured support flexibility securing commitments to volume variations of +/- 10% in ticket volumes with no adjustment to fees
  • Obtained flexibility to roll over 20% of underutilized enhancement hours month over month with added flexibility to swap under-allocated ticket volumes towards additional enhancements
  • Attained market-favorable, benchmarked commercial terms for SLAs, rates and productivity improvements

We Align Service Costs to Consumption While Ensuring Productivity Improvements Each Year of Your Term.

We take a holistic approach to your managed services needs across a multitude of commercial issues and employ a highly flexible methodology that enables us to develop a strategy that aligns with your specific requirements while ensuring transparency to cost. Whether you’re looking to renew an existing Managed Services contract for another multi-year term, going to market to replace an incumbent, looking to outsource a portion or all of your in-house support, our market intelligence can empower your decision making every step of the way.

Greg Hall
Greg Hall

Managed Services
Practice Leader

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