Managed infrastructure services extension – $500M contract value

Tullius led the direct source process and negotiations to extend the managed infrastructure services provided by a global managed services vendor to a large government agency.  The services included mainframe, midrange, storage, secure gateway, data warehouse and data centre.  The agency was seeking market competitive pricing, greater price transparency, service transformation and automation, and some services de-scoped.

Key outcomes were:
– Circa 20% reduction in addressable spend
– Transparent pricing tables with hardware, software, maintenance and support separated and data centre hosting charges disaggregated from service categories
– Disclosure of FTE against service categories
– Fully costed program to transform the delivery model and introduce service automation
– Midrange transformation to virtual private cloud
– Refresh of account management and governance

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