Meritum Partners

Procurement Optimization Case Study

Top 3 US-based Global Bank — Global IT Spend Rationalization Initiative


Situation	Approach	Benefit to Client

Large global bank with several hundred million dollars in Offshore IT and Onshore IT Staff Augmentation spend across the US and globe Fragmented spend - over 15 "large"suppliers followed by a long tail of small suppliers Limited insight into spend patterns beyond contractual information Large disparity in supplier pricing Recent acquisitions compounded supplier proliferation	Created detailed baseline: Contracts (T&C), volume of work by position/level, engagement model — T&M, Fixed Price, Managed Services Benchmarked by position against internal and external best-in-class Calculated effective blended rates to identify utilization anomalies Developed opportunity summary Defined a negotiation strategy for realizing opportunity	Identified rate opportunity of 10-15% by benchmarking against best in class Demand management opportunity identified through vendor resource utilization analysis — incremental 15-20% in savings potential Overall vendor negotiations and rationalization strategy articulated Client sourcing group trained to leverage analytics to drive insights and savings

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