Our client, a major food retailer and wholesaler, needed to quickly reduce its spend with external providers.
The COVID-19 pandemic had a significant impact on revenues for their Wholesale division resulting in a requirement for both in-year and longer-term cost savings.
Four large IT outsourcing contracts were in their first few months with little formal opportunity to renegotiate pricing.
A series of recommendations for cost optimisation
- Our analysis showed that savings of €1m+ per annum could be realised
- The risk and investment required for the majority of these initiatives was low
- Peru identified that 6 supplier contracts were up for renewal in the next 6 months; the perfect opportunity to renegotiate pricing but also put in place mechanisms to support sustainable financial and service management
- Peru analysed longer-term, strategic programmes that should be initiated to reduce spend, e.g. applications rationalisation
- Peru provided a series of recommendations on commercial and financial management to ensure that cost optimisation was not simply a one-off exercise
In-year savings of €1m+
Detailed input to the business case for moving services to cloud
Prioritised roadmap of the initiatives to be taken to reduce spend in a controlled manner
The ability to answer stakeholders in the wider organisation on the competitiveness of IT spend
Confidence that a number of arrangements were priced competitively and, as such, not a focus for immediate cost reduction
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