purchased service savings

Starting Down the Path to Continually Finding Substantial Savings in Purchased Services

How do you find savings within purchased services areas that are primarily all covered by specific contracts that are running, on average, about two to three years in length? Most would strategize that if your CFO wants you to start saving money on purchased services contracts, you would just start with the most recent contracts that are coming due for renewal and the new services, software, and repairs, and scrutinize them. But does that really give you the best opportunities for big savings now? The answer is no, you are only looking at the contracts that are up for renewal or new contracts that may have little or no juice to squeeze for big savings. By taking the cyclical route of contracts, you commit yourself to taking what is coming due next instead of being more strategic in finding the big savings opportunities in all of your contracts now!