Major Airline Achieves 13% in Total Term Fee Reductions Representing $10.6M in AMS & Hosting Savings

An IT Services Case Study

Client Profile

A $21B Major Airline

Business Issue

  • Company was approaching first renewal of chosen managed service infrastructure outsourcing partner for
    enterprise critical applications
  • Had not received the expected value from the outsourcing partner over the term but had unexpected
    significant cost increase
  • Need to quickly determine if their incumbent was going to be the right partner before executing a multi-year extension

Services & Results

UpperEdge supported the development, submission and analysis of an RFI of potential providers, resulting in the following:

  • Developed a customized negotiation strategy with incumbent outsourcing partner to improve
    go-forward relationship
  • Achieved 13% in total term fee reductions representing $10.6M in AMS and hosting savings over term
  • Negotiated year-over-year productivity improvements within term ranging from 5-19%
  • Secured flexibility to adjustments in volumes with no impact in cost for baseline deviations based on
    agreed upon thresholds