Renegotiation of IT provider contracts helped a global energy company withstand market volatility in the industry.
A major energy corporation considered sourcing next steps as expiration dates for some of its IT infrastructure service provider contracts loomed. At the same time, business turbulence put high pressure on its revenues and profits.
Imagining IT Differently
In an assessment, ISG uncovered the client’s end user “pain points,” areas of a contract that were as much as 30 percent lower than market rate. ISG gave guidance on a sourcing strategy that inspired the client to renegotiate the contract at same or lower prices and improved quality.
Future Made Possible
- The client realized an immediate savings of 25 percent, with the potential of a 40 percent savings in subsequent years.
- The savings enabled the client to buy time to get through market turbulence in the industry.
- The solution laid the cornerstone for harmonizing all practices to create a common infrastructure.