Category Specific: IT Contract Management How To

152: How to Identify Software Savings Without Relying on Price Reductions w/ Mohammed Faridy

Software has always been one of those categories where on the surface, cost savings appear hard to find. Often the vast majority of spend is with software industry giants over whom the majority of procurement teams have little negotiating leverage.

In today’s show, I focus on how to identify savings opportunities across your entire portfolio of software suppliers.  And when I say cost savings, I don’t mean relying on getting a better rate, but partnering with IT to look more holistically across your entire software category spend.

My guest to take us on this journey is Mohammed Faridy, the CEO of OneView, a contract management tool. I met Mohammed through a mutual acquaintance, and Mohammed is also an experienced technology sourcing consultant and practitioner.

“I’ve found that one of the biggest challenges organizations have with finding cost savings in their software agreements is they don’t know where their software agreements are. If they don’t know where they are then they don’t know what they say. Something as simple as terminating a software agreement is a huge cost savings opportunity – Mohammed Faridy

Highlights from the Show Include:

  • The cost savings opportunities that exist just by knowing where your software contracts are, an what is in them.
  • The four step process that Mohammed takes his clients on to identify software cost savings.
  • Where you should draw the line in terms of which software providers to review, and which are too small.

Links and Resources:

About the author

Philip Ideson

Philip Ideson is passionate about the role that procurement professionals and leaders can plan in creating competitive advantage for their organizations in ways that go beyond the traditional value proposition.

Philip founded Art of Procurement as a way for the procurement community to learn from each other, increasing the impact they have on their organizations. In 2017, he co-founded Palambridge, a virtual platform of procurement experts, technology, and intelligence. Palambridge provides a broad range of flexible procurement solutions, available on-demand.

Prior to Art of Procurement and Palambridge, Philip enjoyed a career that spanned the procurement value chain, working across three continents for organizations such as Accenture, Procurian, Ally Financial, Pfizer and Ford Motor Company.