Business Challenge

A sixty-six billion dollar international conglomerate was purchasing a three billion dollar disk drive business and needed to outsource existing IT services from the seller. The business being purchased was losing over one billion dollars a year and was going to be merged into the clients existing disk drive business. Cost cutting was the order of the day. The seller was providing the IT services at cost to its own disk drive division. Since both parties were going to be selling goods and services to each other in the future, the agreement was to sell at fair market price. The seller normally achieves a gross margin of 25% with their commercial clients and therefore the buyer was told to expect to pay 33% more than the sellers “internal cost”. In order to hit the profit goals of the combined company, the cost of outsourced IT services needed to be reduced by 35%, not increased by 33%. The final price being offered was more than two times what the buyer could afford in one year.  Learn more

Business Challenge

A twenty-seven billion dollar telecommunications company found itself with the highest cost per subscriber and lowest customer satisfaction in the industry. To address these issues, the client decided to outsource significant portions of their customer service operations and rethink major operating processes and supporting systems. A rapid RFP process was run between the two competitors that had the capability to perform the desired services and a finalist was selected. The key challenge was to create, negotiate and implement a contract with the selected provider that would guarantee cost savings, provide significant performance enhancements and increase customer satisfaction on a very tight time frame.  Learn more