You’ve just been notified about your upcoming IT contract renewal. Your current IT outsourcing provider plans to increase prices by 15%.
When approaching IT outsourcing or IT contract renewal, many organisations struggle with how to balance value, service quality, and reduce IT risk.
What do you do?
You’ve been with this service provider for 4 years. The service has been acceptable, if not brilliant. They’ve always delivered and maintained the service.
A procurement process is time (and money!) consuming, and might only drive a lower price rather than a more impressive service.
Tendering could work. But you can’t be sure what criteria to focus on or what service elements are worth paying more for. The last tender took nearly 6 months to complete…
How, where, and who delivers IT services is one of the most important decisions an executive can make.
Technology underpins almost every business process. The impact of getting it wrong is measured in more than a few lost customers; it can affect share price, reputation and, in some instances, careers.
https://www.reuters.com/business/bank-ireland-fined-245-mln-euros-over-it-failures-2021-12-02/
According to figures from ISG, contracts worth a total of $18.5bn (£14bn) are due to expire in 2022.
Planning for IT Contract Renewal? Here’s What to Consider
The issue is understanding where you should be investing your money to reduce your risk and improve the service. In short, how do you achieve demonstrable “Value for Money”?
Using the consumer motor insurance industry as an example, research suggests that half of all drivers could save 23% on their premiums if they perform market comparisons. If even a fraction of that saving, say 5%, can be uncovered through similar objective comparisons, business consumers of IT services could be on track for at least £700m of savings.
For most businesses, the only model that exists for comparison is the procurement and tendering process, and that means changing focus from the core business, researching other suppliers, and starting a costly and time-consuming tender process.
However, a recent survey by Deloitte discovered that over 50% of participants found that third-party advisors added value during strategic assessment, business case development, RFP / vendor selection, market testing, negotiation and contracting.
Why Independent IT Benchmarking Matters
The key to making such a model work, is trust and independence. It’s essential to know that the advice offered is completely unbiased. Next, you must have the confidence that the model truly and fully reflects your requirements and conditions and has sufficient breadth. Comparison needs a large pool.
How IT Benchmarking Supports a Successful IT Contract Renewal
Given the importance of the decision to be made, and the potential benefits of change against the risk of doing nothing, what’s stopping you using independent comparisons to inform your renewal dilemma?
Our IT benchmarking model is designed to reduce IT risk and optimise IT value.
Whether you’re renewing an IT contract, exploring outsourcing options, or simply seeking a better deal, independent IT benchmarking provides the insight needed to make confident, data-led decisions.
Explore how we’ve supported other organisations with IT sourcing and contract renewal—see our case studies for real-world examples.
And if your outsourcing contracts are coming up for renewal, please contact us today for an independent perspective on your options.
Q: What are the benefits of using IT benchmarking during contract renewal?
A: IT benchmarking provides independent, data-driven insights that help organisations compare supplier performance, pricing, and service value—so you can negotiate confidently, reduce IT risk and costs, and improve outcomes.
Q: When should I start planning for IT contract renewal?
A: Ideally, planning should start 12–18 months before contract expiry. This allows time to assess IT performance, explore the market, and make informed IT sourcing decisions without disruption.
