IT Software Case Study
Client Name/Size/Sector:
- Company Name Confidential
- $15+ Billion Annual Revenue
- 5K+ Employees
- Financial Services
Supplier:
- Salesforce
Engagement Type:
- Client engaged “The Negotiator Guru” (firm) to deliver IT Strategic Sourcing Advisory Services to a specific business unit.
Problem:
- While the client had a centralized procurement department (good thing), there was very little support from the IT department. In other words, the IT department operated independently and did not trust the client’s procurement department.
- The client did not have a centralized spend visibility tool
- Note: The client had SAP as their primary ERP system but was not able to accurately identify spend across regions as a result of poor reporting from the tool.
- The client’s IT spend is broken between global and regional budgets depending on the application.
Activities:
- Identified current state contracts across the globe
- Identified both influencing and decision-making stakeholders within IT and the Business Units that utilized similar software packages.
- Coordinated global business units and stakeholder meetings to discuss opportunity, gather feedback, and drive results.
- Utilized proprietary tools, templates, and techniques to assign global roles & responsibilities, action items, and negotiation tactics in the interest of speaking from one voice.
Results:
- Client Savings: $13 Million
- Negotiated the agreement down from $25 Million to $12 Million for a 3-year contract.
- Even though the firm was retained to focus only on a specific business unit, we identified cost savings opportunities that benefited multiple business units across the organization.
See More Case Studies
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Contract Consolidation Post-Merger
Client Profile
A national healthcare provider with 10+ facilities undergoing post-merger integration of systems and vendor contracts.
Challenge
Multiple overlapping software and infrastructure contracts (some with auto-renewal clauses and duplicative pricing) created an estimated $5M in redundant spend and significant compliance risk across entities.
TNG Solution
- Conducted a full post-merger contract risk assessment.
- Identified conflicting licensing terms and misaligned SLAs across vendors.
- Renegotiated bundled agreements, centralized governance rights, and aligned pricing to true usage.
Outcome
Eliminated $5.3M in redundant costs and created a centralized contract framework that mitigated legal exposure while ensuring scalability for future growth.
SaaS Contract Optimization
Client Profile
A Fortune 100 big-box retailer implementing a multi-year rollout of a cloud-based workforce management platform across 1,200 locations.
Challenge
Vendor’s original SaaS contract included non-negotiable annual price escalators, unscalable support fees, and unrestricted termination clauses, leading to a potential $14M overcommitment.
TNG Solution
- Conducted a clause-by-clause risk audit.
- Introduced performance-based renewal language, capped escalators, and tiered user thresholds.
Outcome
Negotiated total contract value down by $6.8M, implemented enforceable performance guarantees, and secured rights to re-negotiate upon key business changes.
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SAP Indirect Access & Audit Exposure
Client Profile
A publicly traded global logistics company with over 30,000 employees and a complex SAP landscape.
Challenge
SAP alleged the client owed $9.6M in retroactive fees due to indirect access violations following an internal audit. The client had signed an outdated license agreement that left them fully exposed.
TNG Solution
- Performed a forensic risk analysis of the original SAP contract and audit report.
- Identified outdated metrics, ambiguous user definitions, and license overlap.
- Negotiated a new licensing model that eliminated indirect access exposure and established a future-proof digital access clause.
Outcome
Reduced SAP’s claim from $9.6M to $0 and negotiated a forward licensing strategy that saved the client $7.2M over five years.
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