Wavestone The IT Leader’s Recession Playbook

Contract health checks Assess the contract portfolio and prioritize for renegotiation or recompete. Key factors to consider are:

Tech solutions and automation: Revisit the solutions and platforms used to deliver services. Well-represented technical and automation solutions consistently achieve year-on-year efficiencies.

Right-sizing: Reduction of bloat in vendor’s team size.

Pricing model: Analyze the current pricing model as it might not be the right model for the engagement, and you might be paying more for what is being consumed.

Pricing: Benchmark vendor pricing as this is frequently the single largest source of cost reductions.

COLA: Misaligned COLA clauses have a compounding year-on-year effect and lead to significant value leakages.

SLAs: Recalibrate the existing provider-friendly SLAs to best-in-class SLAs with stringent fee-at-risk and consecutive SLA default penalties.

Contractual T&Cs: Reassess the key terms and conditions for certain aspects which might lead to higher contract value.

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