When a large business unit is divested, you need to split IT assets that span hundreds of vendors and hundreds, perhaps thousands, of individual products, subscriptions and services. And if the divested entity won’t need certain assets, you need to reduce your footprint. In some cases, you have to provide post-divestiture transition services for a period of time.
The fact is, most of your IT vendor agreements don’t allow for unfettered assignments, transfers, transition periods or commitment reductions – you need to get the vendor’s approval. And most vendors view each approval as a revenue opportunity.
Once the desired future-state IT asset allocation plan has been defined, there is a stunning amount of information management, process control, cost-mitigation analysis, negotiation and contract work to be done. It’s nitty-gritty work that takes time and requires a specific skill set. This is where NPI steps in.
NPI is uniquely qualified to augment your team so you can rationalize your IT portfolio and meet your deadlines. For over 15 years, we have helped our clients deal with enterprise IT vendors all day, every day. We know how vendors behave at the negotiation table. We know whether they’re offering a fair deal. We speak their language, and we understand their licensing and subscription documents. For NPI, this is just another flavor of transaction-level IT purchase optimization.
NPI has a proven approach to divestiture-driven IT asset rationalization that helps you complete negotiation with IT vendors on time, and get the best deal. Here is a high level summary of the process:
Throughout the project, NPI seeks material opportunities to drive additional value including market-based pricing/cost targets, value-added terms and conditions, and other relevant recommendations.
NPI performs project coordination and provides status updates, issue resolution and leadership team updates.