The Business Issue
ETBS were engaged to assess and benchmark the market compliance and competitiveness of a proposed 3 year transitioning to a new Managed Infrastructure & Applications service model to our client, detailing specific vendor proposed pricing and service offering.
If the pricing were found to be uncompetitive compared to market pricing based on the services/SLAs etc. being offered, then the client would be need to consider firstly asking the vendor to justify the price differential and then if appropriate, negotiate the contract pricing to a competitive level or alternatively go out to market with a Request for Tender.
What We Did
During this assessment, and after receiving the requisite information, we analysed and compared the following price drivers as part of the ETBS methodology:
Statement of Work (SoW):
SAP
Non-SAP
Pricing:
SAP application stack
Non-SAP application stack
Infrastructure:
Midrange Windows/UNIX
Onsite Resources
Tools Implementation
ITIL Service Process Management
Account Management Fee (AMF)
Service Levels (SLAs);
Environmental complexities unique to the client.
Supporting evidence of our findings via qualitative information.
What We Discovered
After extensive and thorough comparative analysis, we made the following findings:
The SoW was market compliant.
The Annual charges were 3% more expensive than the market. The client justified this by agreeing they were potentially procuring a market leading Cloud Contact Centre solution.
The Voice Talent services pricing was not market compliant and the client was happy to source this service elsewhere for a more market compliant price.
The Contact Centre solution user training was not market compliant.
SLAs were not yet determined and agreed between the parties, however defining and implementation of SLAs were agreed to be a phased approach where the Service Level Targets (SLTs) were to be increased and optimised after 6 months to achieve client business and IT objectives for this service. ETBS still provided the parties with typical measurements and targets for such a solution.
The Outcome
The result is too early to tell what the outcome will be as our findings have been incorporated into an Executive Committee paper with our client’s Executive General Manager currently reviewing the results.
LET'S TALK
The team at ETBS would be delighted to assist you in your business improvement journey. To ensure we are the right fit for your needs we offer an obligation free first consultation where we can explore your needs, suggest a course of action and outline costs.
