IT Spend Management

Cost management is on every IT buyer's agenda.
Armed with specific intelligence and actionable advice,
our clients save 5 to 40 percent.

How?

advisory-services
Day by day, technology products and services become more business-critical for every industry sector. Increasing reliance, combined with a continuous stream of new capabilities in the marketplace, drives growing IT cost.

The challenge is that most IT budgets simply don’t stretch far enough. In many organizations, infrastructure needs upgrading, and exciting opportunities for IT to deliver even more business impact are un-funded. Strategic IT spend management can help close the gap between what your organization needs and what it can afford.

Expert Resources, Actionable Intelligence

NPI has helped clients optimize billions of dollars in technology investment. We have a singular objective: To identify and prevent IT overspending. NPI’s IT spend management services yield savings that can be re-purposed to fund additional strategic projects, or feed into cost reduction initiatives.

NPI combines vendor-specific insight, benchmark data, deep practitioner experience and objectivity to reduce the full-lifecycle cost of technology investments. Our clients recognize real IT cost savings and get more value from every dollar spent.

Our data-backed services help clients make confident purchase and renewal decisions more quickly. Like other trusted advisors – legal, financial, operational – NPI delivers domain-specific expertise to navigate complex decision-making and mitigate risk.

NPI clients save an average of 10 to 40 percent on the capital technology investments under NPI review, and 5 to 15 percent on services and maintenance.



Seamlessly Integrated into Client Operations

NPI is an active extension of our clients’ IT sourcing teams, and an embedded element of their IT sourcing process. Throughout the budget year, our consultants:
  • Provide vendor-specific analysis and cost reduction advice on sub-categories of IT spend
  • Analyze cost/performance for technology options (including migration to cloud solutions)
  • Benchmark fair market value for transactions – 65 percent don’t pass the test
  • Help clients restructure existing supplier relationships
  • Define and manage RFX sourcing events
  • Normalize disparate proposals for decision-making
  • Assist with M&A-related technology consolidation and cost reduction
  • Assist with divestiture-related technology re-apportionment and cost management
  • Track spending, and identify areas that can yield the biggest cost reduction impact
  • Evaluate vendor portfolios, segmenting suppliers based on their strategic versus commoditized value; and optimizing the supplier mix for manageability, cost and risk reduction
  • Establish vendor management strategies, metrics and processes
  • Optimize purchasing processes including internal alignment, competitive bidding, vendor communications and approval procedures
  • Contribute to strategic sourcing planning and budgeting


 

Measurable Results

The results are immediate and long-term – delivering value during the budget year and beyond. They include:
  • Annual savings roadmap plan
  • Immediate transactional savings
  • Sustainable ongoing savings
  • Shelf-ware avoidance
  • Over-capacity avoidance
  • Enhanced flexibility built into supplier relationships
  • Independently-benchmarked purchases for governance and compliance
  • Sourcing team bandwidth expansion
  • Enhanced Sourcing Practices
  • Faster, more confident IT purchasing which, in turn, accelerates business benefit and competitive advantage

NPI PERSPECTIVES on Technology Sourcing Enterprise technology presents several unique sourcing challenges. It is one of the few remaining categories of indirect spend in which pricing and terms fluctuate wildly from customer to customer, and there's no visibility into fair market value.  Even companies with the most advanced IT procurement operations overpay millions of dollars every year. Why? Read more >

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