Contract renegotiation provides opportunities for significant cost savings

The client, a prominent organization in the retail sector, sought to renegotiate its IT services contract to improve cost and quality of the services delivered.
For many organizations with outsourcing of IT services, the renegotiation of the primary contract represents an opportunity to both achieve significant cost savings, but also improve quality of the contract. The primary contract typically represents a significant part of total IT spend, and therefore requires preparation and in some cases external assistance to achieve the best results.
The client recognized the importance of optimizing costs and maximizing value during the negotiation phase to ensure a successful partnership with the selected service provider.

Worker using a metal grinder with sparks flying.
Cost Savings
By reducing the original proposal from €39.1M to €20.9M — nearly a 47% drop in cost through effective negotiation.
€18.2M
Total saved
Risk Mitigation
Key risks like audit exposure and contract clauses were addressed, delivering €18.5M in risk reduction, boosting long-term financial and legal safety.
€18.5M
Risk reduction
Co-financing Secured
The team unlocked €4M in external funding, up from €1.5M, helping reduce upfront costs and support implementation.
+€2.5M
Net increase
Improved Terms & Conditions
Negotiation secured flexible contract terms, including future discounts, exit rights, and support for business divestiture scenarios.
  • Price protection + future discounts
  • Flexible extension & termination rights
  • Divestiture rights (TSA)