Summary

Deecon’s Technology and Innovation Group (TIG) conducted comprehensive commercial assurance of the client’s strategic technology vendors, identifying over £100k of in-year savings and a further ~£700k per annum in long-term opportunities. The engagement provided actionable insights, robust benchmarking, and a series of process improvements to drive sustainable cost reduction.

The Requirement

Deecon’s TIG was engaged to conduct a full commercial assurance review of nine strategic technology vendors, with a mandate to identify opportunities to reduce operating expenditure, particularly those that could deliver in-year benefits. The scope included contract health checks, price benchmarking, usage analysis, strategy assessment, and opportunity development.

The Solution

Deecon deployed a structured five-step methodology for each in-scope vendor:

Contract Health Checks: Comprehensive reviews of contracts, variations, and work orders to assess risk and alignment with industry standards. Each contract was summarised and scored for ‘health’, highlighting key issues.
Price Benchmarking: Detailed analysis of licensing, support, and professional services, pricing against market rates and competitors, identifying opportunities for cost reduction or confirming value for money.
Usage Analysis: Assessment of contracted licence volumes versus actual usage, and support levels against ticket volumes and response times. Software development projects were reviewed for resource allocation and efficiency, highlighting right-sizing opportunities.
Strategy Assessment: Evaluation of sourcing strategies (insourcing vs outsourcing, onshoring vs offshoring, bespoke vs off-the-shelf) to identify long-term cost and risk reduction opportunities.
Opportunity Development and Analysis: Each opportunity was assessed for feasibility, timing, and business value, and categorised as a ‘quick win’ or a longer-term initiative requiring upfront investment.

The Results

Deecon identified over ~£100k of in-year savings across two key vendors; Salesforce and Microsoft, achievable through immediate licence volume reductions. In addition, nine further opportunities were identified, which, with some upfront investment, could collectively deliver ~£700k per annum in ongoing savings. Deecon also recommended a series of process changes and training courses to support long-term cost control and operational excellence.