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

An IT Services Application Management & Support Case Study

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