At a glance
- £1.5m current spend
- £600,000 savings
- Improved contract and commercial position
Data Centre Contract MOT & BenchmarkingClient:
A constituent of the FTSE 100, the client is one of the oldest and largest property development companies in the United Kingdom, investing in retail and office property.Scope:
The company initiated this project due to a unique situation where they owned 10% of their IT supplier whilst at the same time providing 30% of their annual business, being the largest customer to a relatively small supplier.
The client required a full contractual review and benchmark of the pricing, to gain a clear picture of their current commercial position.Key Business Benefits:
- Identification of £600,000 savings
- Identification of 23 red clauses and 28 amber clauses totalling 61% of the contract
- Identified risks
- A clear negotiation strategy document created
Turnstone conducted a complete contract review through its proprietary Contract MOT model. The negotiation strategy was set up on the basis of this review.
The next step was a benchmark analysis, 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.”