Managed infrastructure services $100M contract value

Tullius led the design and execution of a managed infrastructure services sourcing strategy for a large Australian Government department. Tullius was engaged to deliver a 20% baseline cost savings target in order to meet business case hurdles. Tullius drove a direct source negotiation with HPE, the incumbent supplier, and significantly outperformed both financial targets and project timelines.

Key outcomes were:
– Circa 30% reduction in service charges averaged over the term
– Modernisation and Service Transformation program with 50% co-investment from the supplier
– Significant increase in price transparency and disclosure
– Significant tightening of service levels
– Introduction of ‘terminate for cause’ provisions for consecutive failures

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