Outsourcing Contracts Need to be Regulated
The price for outsourcing services vary and fall with time, and for a number of services that drop can be significant from year to year. Zangenberg Analytics offers benchmarking of IT-contracts and advisory services in IT-finance. We help private companies and public organizations understand the current market prices for their IT-setup. There is a lot of money to be saved by continually adjusting the price of a contract according to the market markedet. and most vendors are willing to have this discussion to keep a long-time customer.
What Do We Benchmark?
We continuously refine and expand our benchmarking model. At the moment we are able to benchmark the following outsourced services:
- Midrange Operation (infrastructure, application, database)
- Mainframe operation (infrastructure, application, database)
- Network operation (LAN, wireless, WAN)
- Workstation (Cover, Portable, Virtual Desktop)
- Help Desk, Service Desk
- Cloud IaaS
- Cloud PaaS (certain vendors)
- Cloud SaaS (certain categories)
- Software-Pricing (certain products)
- Application Maintenance
How Do You Use a Zangenberg Benchmark?
A Zangenberg Analytics benchmark gauges the current market price for an outsourcing contract. This information can be used when negotiating with your vendor. Our experience is that all vendors are willing to discuss price regulation based on a serious benchmark, whether it is part of the contract’s ‘benchmarking clause’ or not.
Our benchmarking model can also be employed to predict the price of a potential contact in situations where you, for example, already have internal operations. We can also forecast different scenarios to give important insights on sourcing strategy or necessary changes for internal optimization.
A better model for benchmarking
We Calculate Price Like the Vendors
In short, our benchmarking model calculates the price of a contract in the same manner a vendor does: based on unit prices for specific components within the contact, the SLA’s as well as a contract terms and conditions.
Our model gives you the price you should expect, if the contract had been up for RFP. It is not the average price of other randomly selected contracts, or the 25 or 75 percent. This is because, we believe clients should aim for a competitive price in an open market.
We have more data and Greater Precision
Our database consists of more than 350 active contracts and continues to grow through our benchmarking business. The volume of data in combination with our extensive calibrating process and statistical models drives the precision of our benchmark. Our database is also recognized by leading global vendors, who have evaluated our model in great detail.
We Update Our Model Each Quarter
We maintain a database consisting of the current competitive unit price for all relevant service components, such as operation of a 1CPU Virtual Windows server, or 1GB Tier 1 (SSD) storage.
We Benchmark Our Own Price
A benchmark from Zangenberg Analytics is priced between 250.000-400.000 DKK depending on the type of contact. This places us as the most attractive benchmark on the market with a model that carries the highest precision.