© Contract Negotiation Corporation
Enterprise Platform Upgrade
The CIO of a major Insurance company needed to upgrade his mission critical computing platform in order to maintain competitiveness. The challenge was to improve the vendor relationship, optimize the terms of the agreement and bring pricing back in line with strict budgetary constraints despite the fact that the vendor was asking for large incremental upgrade fees and had already delivered a written confirmation of the "Best and Final" price.
First, an analysis was done to determine the customer’s needs and the value derived from the vendor’s products. The vendor’s proposal was then reviewed and reworked, and benchmarks were drawn up to assess the strength of the partnership and reveal areas for improvement. From this, a plan of action was developed which successfully brought the vendor back to the negotiating table and face-to-face negotiations were completed.
The client was able to keep costs within the project budget through lowering the pricing by over $600,000 and securing an additional $600,000 discount on future upgrades while significantly improving a troubled relationship.