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PHONE HOTLINE: +1 (866) 530-ISAM (4726)E-MAIL: info@isamgroup.com
CONTACT US
CONTRACT RENEWAL FOR CREDIT CARD COMPANY

How ISAM Helped a Credit Card Company Save $130k in Contract Renewal

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INDUSTRY: Financial/Credit Card
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PRODUCT: Negotiation Support
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SIZE: 30,000
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ESTABLISHED: 2008
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SAM TOOL USED: SCCM
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VENDOR FOCUS: Splunk
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KPIS: Cost savings, time taken to complete the negotiation process, number of additional value-add services
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ISAM SERVICES UTILIZED: SAM Advisory, Contract Negotiation, Benchmarking, License Optimization

The Problem

The client was in the process of renewing their Software-as-a-Service (SaaS) contract while also adding additional storage. The initial contract proposal carried a 10% discount. However, the Enterprise License Agreement offered by the vendor was priced higher than ISAM’s known discounted pricing. Encryption was a requirement for this particular contract, and the vendor used this to their advantage to price the contract high.

Objectives

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Renew Software-as-a-Service (SaaS) contract.
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Add additional storage.
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Ensure that encryption requirements are met.
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Identify areas for cost savings.
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Meet short deadline for business purpose.

The Solution

To assist the client, ISAM provided a comprehensive review of the existing contract and submitted a proposal that offered several targeted pricing options for the various components. Additionally, ISAM provided best practice terms and conditions for negotiation to ensure that the final contract would be beneficial and cost-effective. ISAM’s expertise and attention to detail helped to streamline the negotiation process and ensure that the client received the best possible deal.

Solution Approach

1
ISAM conducted a comprehensive analysis of the existing contract.
2
Using their proprietary GreenBookSM database, ISAM compared benchmark data to identify areas where the contract could be optimized to better align with industry standards and best-in-class pricing.
3
Developed a proposal that offered several targeted pricing options for the various components of the contract.
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Leveraged ISAM’s expertise in contract negotiation to streamline the negotiation process and obtain the best possible deal.
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Delivered a solution that resulted in significant cost savings for the client while also providing additional value-add services to help the client meet their business needs.

Key Insights

Conducting a comprehensive analysis of an existing contract and benchmark data is crucial to identifying areas for cost savings and ensuring that all requirements are being met.
Offering targeted pricing options and negotiating best practice terms and conditions can help to streamline the negotiation process and obtain the best possible deal for the client.
Even when faced with challenging circumstances, such as timing constraints, it is still possible to deliver significant value by leveraging expertise and attention to detail.

Results

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Client received higher discount and additional value-add services.

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Due to timing constraints, client was not able to realize full value of benefits.

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Despite this, ISAM’s services resulted in significant cost savings for the client, totaling $130,000 per year.

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ISAM was able to deliver tangible value to the client, even under challenging circumstances.

Real solutions, real stories, real success.

The vendor claimed they had provided us with a great deal for a 1TB purchase with encryption inclusive of storage but ISAM’s benchmarking indicated otherwise.

Director, Sourcing and Supplier Management