Technology Contract Benchmarking

Organisations spend on average 5% of their revenue on technology. When invested well it can be an excellent source of value by creating efficiencies, improving productivity and competitive advantage.

However, organisations often implement new technologies, reap the initial benefits and then neglect the contract. They fail to review whether it continues to meet their needs, deliver the desired benefits and that it remains competitive. This oversight can lead to outdated solutions that no longer align with the company's evolving requirements and potentially result in higher costs or reduced efficiency. Regular contract reviews are essential to ensure that the technology continues to provide value and adapt to changing business needs.

Rapid advances in technology can alter market dynamics, with new entrants creating price pressure on existing suppliers. Additionally, organisations often change how they use technology over time, leading to fluctuating usage profiles. Therefore, it is essential to regularly review technology contracts to ensure they are appropriately sized, remain competitive, and continue to offer value. Technology contract benchmarking is the most effective way to achieve this, allowing organisations to compare their contracts against benchmarking data and optimise them accordingly.

Technology contract benchmarking involves periodically reviewing a supplier's product or service pricing and associated terms against benchmarking data. Our technology contract benchmarking service evaluates pricing at a micro SKU level, providing comprehensive analyses of both business and legal terms within 24-48 hours.

Leveraging our unique market intelligence data, we can very accurately identify any pricing and demand discrepancies which can be a source of significant savings.

Todays Key Challenges

01 Contracts renewing without challenge

Contracts renew without demand and price being challenged. Usage changes over time as does pricing and very often leads to overbuying and overpaying

02 Lack of pricing intelligence

No knowledge of how competitive the quoted price is to the market rate

03 No internal capability

Many organisations lack the required internal capability to negotiate optimum contracts

How we can help

We use relevant market intelligence data, negotiation/licensing expertise and executive contacts to accelerate the procurement lifecycle, yielding significant savings and optimising business and legal terms. Key technology categories covered are; software, cyber security, cloud services and hardware.

Technology Contract Benchmarking

Benchmarks at a micro SKU level for Tier 1 (Oracle, SAP etc..) and 2 suppliers
1.25B+ Data points
13,000 Suppliers
£100K Average saving per project

Licensing & Negotiation Support

Licensing experts for major Tier 1 suppliers
Negotiation experts who can “control the narrative”

Executive Contacts

We use a network of senior executives who have worked for Tier 1 suppliers and have extensive knowledge and contacts to help achieve the required discount levels

There are 2 benchmark levels depending on the need. A subscription can be obtained which will offer further discounts based on committed volumes.

There are 4 different levels to our subscription service offering various levels of discount. We will work with you to understand your pipeline of upcoming technology contract negotiations to ensure the right level is selected. Subscriptions start on a minimum 1 year term. Further discounts are available for multi-year subscriptions. All subscriptions come with a procurement success manager who will help identify and maximise the value from the service.

technology contract benchmarking subscription

If following the benchmark you would like us to lead the negotiation, then we would charge a fixed fee % of the TCV for this service. If contract savings were generated of ≥5% then we share a % of the savings.