A large vacation timeshare company with over 23,000 employees, spanning 26 different countries and 7 core languages engaged Seprio to negotiate an enterprise-wide HR SaaS solution from an already selected vendor. Several complications (in addition to the sheer size of the company) became apparent as the project began. First, the solution would need to be rolled out in two phases with the second phase coming 9 months after the first. Second, in order to meet the phase 1 go live date the contract negotiations had to be completed within 30 days. Finally, the Client had recently undergone a significant merger which doubled their employee base, while future workforce optimization was expected to subsequently decrease that number, making it difficult to pinpoint exact user quantities.
Objective
QUICKLY negotiate the best possible terms and pricing for an enterprise-wide HR SaaS solution for a fluctuating number of employees in 30 days or less.
Approach
The team was able to quickly reach an agreement while still securing significant savings. By understanding all the vendor’s available employee license classification options and how each coincided with the different types of Client employees, the team was able to optimize the pricing within the vendor’s own pricing structure. A 5-year contract was agreed upon to ensure a flat-priced agreement, thus avoiding YOY cost escalation. Additionally, since significant functionality was being deployed over one year after contracting, the team secured price concessions to acknowledge that the affected modules wouldn’t be used for the first year of the agreement. To address the workforce rationalization concern, the team negotiated a potential price reduction for years 2-5 of the contract. Always thinking ahead, the team made sure to negotiate the renewal price increase for years 6-8.
Results
Not only did the negotiation take place within the allotted 30 days, the team was also able to secure significant savings of nearly $4M with an additional $1.2M potential savings for workforce reduction over the next 5 years.
