Challenges
Our client, a large international company in the flexible workforce industry, was facing a shrinking market and was seeking for ways to cut costs. The reduction of IT spending was one of the highest priorities. IT management had lost the control on the IT contract portfolio due to the history and growth of the company. Contract values, contract periods and conditions were hardly known and could only be evaluated per contract.
Solutions
Quint proposed an approach in three steps: analysis of the contract portfolio, implementing a demand and supply management function using the Sourcing Governance Framework with emphasis on the contract management function, and finally, rationalization of contracts through operational contract management.
Results
From the analysis conducted, a saving of 15 to 30% on IT expenses proved to be possible within an estimated time frame of two years. After four months, savings of €500,000 had been realized and the number of running contracts and suppliers had been reduced by five and ten percent respectively.
