How PACT delivered the IT sourcing work for an enterprise-wide transformational ERP program and strengthened the IT sourcing capability of the Procurement team at the same time.
Section 1 - The Challenge
Credendo launched a major transformation initiative built around SAP for Insurance. At the same time, sourcing and contract processes were fragmented, limiting transparency, control and compliance.
Key challenges:
High-complexity SAP implementation with significant TCO exposure.
Suboptimal SAP licensing and contract structures.
Dispersed spend data and inconsistent (license) reporting.
No governance over IT contracts and suppliers.
No capability within the Procurement team regarding IT Procurement.
Growing dependency on external partners.
Section 2 - PACT's Approach
1. Sourcing Lead in the SAP programme:
PACT acted as Sourcing Lead and chief negotiator for all SAP licenses, support contracts and implementation services.
Key achievements:
Restructured SAP license models.
Removed unnecessary shelf-ware.
Negotiated improved commercial terms and SLA frameworks.
Controlled scope and change-order risks.
Conducted market benchmarking for SAP and integrators.
Impact:
Very high cost-avoidance and direct savings, allowing to do “more for less”.
Introduced contractual.
Stronger cost control and contractual flexibility.
Reduced implementation and legal risks.
2. IT sourcing & outsourcing initiatives:
PACT also led several strategic IT sourcing tracks:
Selection of a Lead Service Provider for the implementation program.
Outsourcing of end-user computing & infrastructure services.
Sourcing of a custom-built IFRS reporting solution.
3. Contract & vendor governance:
PACT designed and implemented a governance model including:
Contract Governance.
SLA and Obligations Management.
Supplier performance reviews.
Contract Exit & Termination mechanisms.
Implementing a central contract repository and spend analytics.
Section 3 - Results
Section 4 - Why Credendo chose PACT
Unique expertise in IT sourcing, SAP contracting and negotiation strategy.
Proven track record in complex IT programmes.
Pragmatic approach with fast, tangible results.
Strong C-level stakeholder management.
Deep understanding of licensing & outsourcing markets.
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