Contract Savings
Customer
A global manufacturing company with operations in ten countries and 40 locations was carved out of a much larger industrial conglomerate with private equity backing. The PE firm was highly involved in building out the management team.
Challenge
The company had a very expensive transition services agreement with the former parent organization that frankly, was not providing great support. With a deadline for fees to increase and then the added pressure of standing up an entirely new IT infrastructure and support organization just before the COVID-19 outbreak, the new company IT team was forced to negotiate with urgency and without a lot of experience in forging large global contracts with service providers.
The IT organization had already presented several contracts representing approximately $2 million for a signature to management.
Outcome
CXO Sciences analyzed the contracts and took the lead in further negotiations with the service providers. Ultimately, first-year savings of $600,000+ was realized in addition to significant contract risk reduction. Subsequent agreement years would also see sizable cost reductions.