IT spend management is a core competence.Average IT spending per employee has more than doubled in the last two decades, but corporate revenue and operating profits have not climbed proportionally.
Without question, IT spending accounts for a large and growing portion of all operational spending. But, it also has outsized effects on both business strategy and competitive advantage.
With IT Spend so critical to growth, productivity and profitability, GEP provides clients in major markets in Europe, Asia and the Americas deep competencies in IT Spend Management, fielding specialized global teams of unrivaled expertise and experience.
Our track record speaks for itself, or, as our clients will tell you – Saving is Believing.
Big Savings, Sustained Results
GEP has helped some of world's largest, most complex enterprises make systematic improvements in the way they buy IT products and services.
Using three key sourcing levers – (a) internal demand, (b) supplier relationships and (c) governance and compliance – we've helped scores of global enterprises save between 10% to 20%, or more, on benchmarked IT spend.
We integrate both tactical and strategic program elements to maximize the speed and extent of our impact:
- Tactical elements can range from identifying cost drivers and determining support levels (in demand management) to developing contract expiration schedules (managing vendors).
- Strategic elements can include tracking asset and inventory cost metrics, forming cross-functional teams, handling vendor negotiations and tracking organizational performance, using category-specific metrics.
In each and every engagement, we go beyond simplistic notions of best price to consider real savings. So our approach to IT procurement is, by necessity, holistic, never losing sight of notions like total cost of ownership or downstream impact on business competitiveness or strategy.
A Fortune 100 company and a leading global food manufacturer
Select the right business partner who will
- Reimplement a standard ERP footprint for all its businesses across the globe
- Bring significant enablers for processes, technology and solutions
- Effectively manage the execution of a large-scale transformation program in a cost-efficient manner to deliver measurable and sustainable benefits
Scope and Spend Characteristics
- Global business / IT transformation
- $75 million-$100 million in capital investment
We started the project by understanding the client's current ERP footprint and future business imperatives. This, along with an independent market research on the vendor landscape, led to the formulation of the high-level sourcing strategy.
Thereafter, we worked with the client to form and lead the core cross-functional strategic sourcing team that comprised senior leadership from the client's IT, supply chain, procurement and legal business functions.
GEP proposed and implemented a comprehensive partner selection process that included inviting suppliers to a tender, publishing the tender, creating the overall selection framework and multiple negotiation structures, and leading the negotiations.
- More than 20% reduction in overall program cost, compared to the initial proposal
- MDO (most desired outcome) and targets met on all negotiation topics
A global, privately held F&B company
- Achieve cost savings by leveraging global spend and competitive market environment
- Consolidate providers in all telecom-related categories to a maximum of two to three providers
- Evaluate the value propositions of each provider's transformational roadmap, leading to network convergence
Scope and Spend Characteristics
- Global scope
- Over $15 million in annual spend
GEP first formulated the sourcing strategy, which was determined by three key factors – number of providers, number of years (contract tenure), and technology deployment.
Thereafter, the tender document was created that contained the salient terms of the sourcing strategy, including SLAs, contract terms, revenue commitment and insurance.
After evaluation of the RFP response, the participating vendors' transformative designs were also reviewed and recommended vendors in each category were shortlisted. Finally, GEP worked with the client's procurement and legal teams to prepare the contract and get the selected vendor on board.
- Obtained savings of more than 30% in Data and Voice network over three years
- Savings were obtained from the major incumbent, resulting in minimum business and operational disruptions
- Delivered additional benefits through cost-avoidance by negotiating all voice service rates, including smart phone rates
- Consolidated smaller vendors into major categories