The situation
A global private equity firm needed consistent IT cost reduction across parts of its international portfolio.
With vendors ranging from Tier 1 global platforms to region-specific providers in APAC, portfolio companies were negotiating separately, in markets where comparable pricing data is hard to come by.
What we found
A price that looks reasonable in one market can be well off in another. Deal IQ engaged its subject matter experts who had sold in those markets, so each negotiation was run against what the vendor actually accepts there rather than against a global average.
Deal IQ engaged its subject matter experts with regional experience, which matters most on the region-specific providers where benchmarks are hardest to find and pricing opacity is greatest.
The result
- Portfolio companies
- 15
- Largest savings
- Microsoft $1.6M, Tech Mahindra $1.4M
- Balance
- $6.9M across other vendors
- Total savings
- $10.8M
Coverage across APAC and North American portfolios, on Tier 1 platforms and regional providers alike.
Takeaways
- Coverage across APAC and North American portfolios
- Savings on both Tier 1 platforms and regional providers
- Each company negotiated against local pricing, not a global average
Frequently asked questions
Do you negotiate outside North America?
Yes. Around 30% of Deal IQ engagements are international, across Europe, APAC and other markets. This one covered APAC and North American portfolios, including region-specific providers.
Are regional vendors harder to negotiate than global platforms?
There is less comparable pricing data in regional markets and with region-specific vendors, but Deal IQ has subject matter expertise in those markets locally, through an expert network of 350+ people who used to sell for the vendors you buy from. The savings in these situations are often above our average for exactly that reason.
How do you handle time zones on an international portfolio?
We work across every time zone. Our team and our coverage are global, so a negotiation in APAC runs the exact same way as one in North America.
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