Case Study: How KontractOne Helped a Leading Financial Services Firm Save $827K on Their ServiceNow Renewal

Case Study: How KontractOne Helped a Leading Financial Services Firm Save $827K on Their ServiceNow Renewal

Overview

A multinational bank and financial services company with 14,000 employees faced a significant challenge in managing their ServiceNow renewal costs. With an extensive ServiceNow footprint, including IT Service Management (ITSM), IT Operations Management (ITOM), and Customer & Employee Workflows, they were seeking a way to reduce costs while ensuring they received the best value from their investment.

The Challenge

  • Escalating Costs: The company’s ServiceNow renewal quote had increased substantially compared to previous years, putting pressure on their IT budget.
  • Limited Visibility into Pricing Benchmarks: The procurement team lacked access to detailed industry pricing intelligence, making it difficult to negotiate effectively.
  • Complex Licensing Structure: With multiple ServiceNow modules in use, the company struggled to align their licensing needs with actual usage.
  • Vendor Pressure: ServiceNow’s sales team was pushing for an early commitment at a premium price, creating urgency without much room for negotiation.

How KontractOne Helped

At KontractOne, we specialize in ServiceNow contract negotiation, leveraging our team of former senior ServiceNow sales executives who have exclusive insights and pricing intelligence beyond typical procurement reach. Here’s how we approached this engagement:

  1. Conducted a Comprehensive Contract & Usage Audit
    • Analyzed the company’s ServiceNow contract, pricing structure, and usage data.
    • Provided industry benchmarking data to compare their pricing with similar organizations.
  2. Developed a Strategic Negotiation Plan
    • Created a pricing and discount strategy based on our insider knowledge of ServiceNow’s discounting and sales tactics.
    • Crafted a compelling business case to leverage competitive pressure and drive down costs.
    • Recommended contractual safeguards to lock in favorable pricing for future renewals.
  3. Led High-Impact Negotiations with ServiceNow
    • Engaged directly with ServiceNow’s account team to counter vendor pressure and push for maximum discounts.
    • Secured higher-than-average discounts on ITSM, ITOM, and Customer & Employee Workflows.
    • Negotiated more flexible terms, including reduced annual escalations and enhanced service levels.

The Results

Through our expertise and strategic approach, KontractOne successfully reduced the company’s ServiceNow renewal costs by $827K, delivering a 22% total cost reduction.
✔ $827K in total savings
✔ Improved contract flexibility to support future scalability
✔ Increased internal procurement confidence in IT vendor negotiations

CFO Testimonial

“Partnering with KontractOne was a game-changer for us. Their deep understanding of ServiceNow’s pricing structures and insider knowledge gave us a significant advantage in our negotiations. Not only did they help us achieve substantial cost savings, but they also ensured our contract terms were set up for future growth. We couldn’t have done this without them.”

Why Choose KontractOne for Your ServiceNow Negotiations?

  • Former Senior ServiceNow Executives: We know how ServiceNow negotiates, so we anticipate their moves before they make them.
  • Exclusive Pricing Intelligence: Gain access to data-driven insights on industry-standard discounts and licensing strategies.
  • Proven Cost-Saving Strategies: Our clients routinely save 15-30% on their renewals.
  • Full-Service Contract Support: We don’t just negotiate price—we ensure your contract aligns with your long-term IT strategy.

Ready to Reduce Your ServiceNow Renewal Costs?

Don’t let your ServiceNow renewal drive up your IT costs. Contact KontractOne today and let our experts maximize your savings while supporting your ServiceNow investment.