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Independent benchmarking helps extend client contracts competitively

Challenge

Our client has a complex inhouse datacentre solution with a market leading provider. The solution needs transformation including the leveraging of new cloud technologies. The architecture and design of the solution is ongoing which necessitated an extension to the existing contractual arrangements.   

Approach

  • Reviewed the client’s requirements and draft contract schedules to gain a detailed understanding of the scope, volumes, and service levels of the new services.
  • Peru liaised with client stakeholders to understand the context of the extension, history with the supplier, coverage of asset charges, commercial and service models.
  • Peru’s database of outsourced contract pricing was mined to provide similar contract data to form a peer group for comparison of each of the services.
  • An expert review of contract schedules, services and operating model was undertaken.
  • We identified areas for further negotiation with the incumbent supplier.
  • We supported the negotiation and made contract amendments.

Outcome

  • Our client reduced its existing annual run rate charges by c10% based on an extended term.
  • This extension has enabled the client to maintain its planning for a transformed solution.     
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Industry

Financial Services

Geography

UK & EU

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