Baseline
A Legal Services Company needed a new contract for web calling licenses, a telecom & wireless line that tends to renew quietly and cost more each time. The incumbent’s bid was the number to beat. Without a competing position, that bid would have become the default price for the full term.
What we did
S2V, acting as the client’s buy-side advisor, ran the sourcing and negotiation. The focus was price: we negotiated a credit and a reduction in license cost. The client’s team weighed the bids and made the award decision, with the incumbent’s offer as the benchmark. Working with IT, we also aligned the commitment with a ramped licensing structure that ties license commitments and subscription fees to the implementation and deployment schedule.
Implementation and adoption
The new contract runs for 36 months, so the lower license cost is locked in for the whole term rather than reopened at each renewal. Savings are measured by comparing the awarded bid with the incumbent’s bid. That gives finance a clear, auditable baseline, and it gives procurement a figure it can stand behind.
Validated result
- $144K saved over the 36-month term, or $48K a year, measured against the incumbent’s bid.
Related
- Strategic Sourcing: S2V Accelerator
- Value Tracking: S2V Pulse
- Professional & Legal Services
- Telecom & Wireless