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Savings initiative - Project example from the financial services sector

Goal: Cost optimization in the area of "non-Big4 software" (>8 % on the project baseline)


Initial situation

  • As part of a cross-commodity-group cost reduction initiative on the basis of a defined baseline and with a clear savings target a measure focussing software spend is to be implemented.
  • For the implementation of the project "Non-Big4-Software" a potential of 8-10 % cost savings p.a. is envisaged
  • The project adresses a portfolio of >100 software providers with actual yearly costs of a middle double-digit million amount
  • <10% of the planned savings are budgeted to finance the measure
  • Identified levers for cost reduction are mainly termination, substitution, consolidation, demand adjustment or (price) negotiation


  • The project goal is to reduce costs in the focused software segment by 8-10 % p.A. Starting from the following year of the measure

Out of Scope

  • Out of Scope are the "big" vendors for whom software asset management processes already exist and/or are treated separately (e.g. IBM, Microsoft, SAP, Oracle,...)
  • Implementation and optimization of software asset management
  • Contracts with unresolved licensing issues without new requirements or levers for cost reduction

Different levers can be used to achieve savings

Lever Indicators Examples Requirements
Termination of maintenance Use of support services

Rare release upgrades (especially during maintenance)
premium support

Non-server products
Reinstating the conditions
Renegotiation of maintenance fees Positioning of suppliers in the company (possibly single/ entry-level products) Project Management Software

Think-Cell, Adobe,…
involvement of product users and owners
Consolidation of software Different products with the same functionalities

Interface independence
Numerous suites/ smaller products Internal stakeholder agreements and clear- cut positioning towards suppliers
Change of license model/new purchase Multiple license systems/ license system change

Breakdown of 'All-you-can-eat‘ contracts
Software with different user- / server licensing metrics Management readiness for de-commissioning
In-house development vs. market systems Full ownersship in-house developments business insurance systems  

Project flow

The project starts with the analysis of the portfolio, in parallel a pilot and the implementation of the individual measures


Initialization phase

  • Detailed kick-off communication
  • Identification of the relevant contact persons
  • Adoption of the baseline in coordination with the IT management
  • Identification and collection of contracts in cooperation with procurement and license management
  • Recording and rough classification of license/maintenance contracts in a contract template

Contracts recorded and responsible parties identified

  • Contract template
  • Communication plan
  • First prioritization on the basis of saving potentials
  • Methodology/ possible pilot selection

Analysis phase

  • Detailed analysis of the contracts with regard to the relevant evaluation criteria
  • Identification of possible savings levers per contract
  • Dispatch of a questionnaire/ conducting interviews with product managers
  • Prioritization with regard to estimated savings potential on the basis of possible levers
    • Identification of possible quick wins
    • End of contract/ periods of notice
  • Definition of a milestone plan

Leverages and potentials identified and contracts prioritized

  • Prioritized contract list
  • Defined procedure/ negotiation strategy
  • Milestone Plan

Implementation phase

  • Detailed analysis of the focussed contracts
  • Implementation of possible measures to achieve savings
  • Implementing the demand levers (as far as feasible)
  • Renegotiation of contracts, in particular the price and licence conditions as well as legal details of the contract use
  • Reporting/tracking of the KPIs and follow-up of the results

Individual measures implemented and savings achieved

  • Renegotiated contracts
  • Implemented replacement solutions / deinstallations (or transferred responsibilities)
  • Resubmission list

Our other competences


Achieve optimal results, in any negotiation position

Cost Management

Understand and optimise costs


Successful communication and strategic change management

IT Management

Secure IT operations and leverage innovative technologies