At a glance


  • £1.5m current spend
  • £600,000 savings
  • Improved contract and commercial position
 
Download Data Centre Contract MOT & Benchmarking case study Download printable version of Data Centre Contract MOT & Benchmarking case study

Project:

Data Centre Contract MOT & Benchmarking

Client:

Confidential

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:

 

Cost savings

  • Identification of £600,000 savings
  • Identification of 23 red clauses and 28 amber clauses totalling 61% of the contract

Commercial benefits

  • Identified risks 
  • A clear negotiation strategy document created
The Turnstone Approach:

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.”  

 

CIO