Data Centre Contract MOT and Benchmarking

The client was in a unique situation where they owned 10% of their supplier whilst at the same time providing 30% of their annual business.

With this in mind the client required a full contractual review and benchmark of their pricing to enable them to mitigate risk, negotiate successfully with their supplier to reduce cost.

The client wanted:-
-    Contract review
-    Identify negotiation approach
-    improved and safer contractual terms
-    to reduce existing costs

•    Identification of £600,000 savings
•    Identification of 23 red clauses and 28 amber clauses totalling 61% of the contract
•    A clear negotiation strategy document was written to mitigate the risks identified and improve the clients commercial position

Utilising Turnstone’s proprietary Contract MOT model a complete contract review was conducted which provided the basis of a negotiation strategy. A benchmark analysis was also performed which identified potential savings of up to 50%.

“We were in a unique situation where we didn’t have the typical customer-supplier relationship with our data centre provider.  We also had a six year old contract that we knew needed to be renegotiated due to commercial risks and spiralling costs. We deployed Turnstone to conduct a full contract review, compile a re-negotiation plan and benchmark our current costs.”       

Ian Davies, CIO British Land