What we do
Cost or quality challenges can create enormous pressure on CIOs to seriously consider changing IT suppliers. In these situations, incumbent suppliers have typically established barriers to exit over the course of the relationship to make it extremely difficult to switch suppliers. UpperEdge provides the following components of when advising clients in supplier switching scenarios.
IT Supplier Switching Cost Calculation
Switching costs can be difficult to calculate. Typically, the incumbent supplier has put a strategy in place which increases their customer’s perception of both tangible and intangible switching costs. Studies have shown if the perceived costs of switching are too high or too difficult to calculate, incumbent suppliers obtain margins on renewals that are above market expectations. UpperEdge assists companies with the building of switching cost financial models so they can fully understand the levers to pull in order to switch or to enhance the effectiveness of renewal negotiations.