Quarterly Analytics is part of Zangenberg Group. Zangenberg Group offers a number of advisory services, focusing on the strategic and financial aspects of IT, and provides the most comprehensive suite of benchmarking services for outsourced IT and software in the Scandinavian market. Visit zangenberg.biz for more information
Why benchmarking matters
Benchmarking is the first step ensure that you pay a fair prices for your outsourced IT services.
Market prices for infrastructure IT services are decreasing with an estimated 15-20% annually, and benchmarking should be used to optimise your costs as a recurring part of your contract management process for existing contracts.
For customers participating in Request for Proposal processes benchmarking of the received proposals helps to ensure that they are aligned with market prices, and that the proposed services offered are thoroughly checked.
When should you use benchmarking?
There is a cost associated with benchmarking, and as follows benchmarking is most commonly used as part of larger contracts with some level of complexity, and for contracts where the scope and content have changed – or will change – significantly during the contracts’ lifespan. For smaller and less complex agreements we typically reccommend Quarterly Analytics marketpricing data as a jump off point for negotiations with vendors.
A benchmark should always be considered if there has been no price adjustments in a contract for the past three years, as the natural development of the market prices will indicate a significant difference between the contracts’ prices, and the current market prices.
A benchmark of a contract can also be initiated as part of a Request for Proposal process, a contract negotiation process, or when new services are introduced into the contract.
What does a benchmarking project look like?
The benchmarking process starts with a data collection, where the scope of the contract, and the financial and technical baseline is established.
The full mapping of the current infrastructure is adjusted to market standards to enable normalisation of the delivered services.
When the normalisation is done, we validate that the data really is comparable with standardized unitprices in our benchmarking model.
Our benchmark model is based on the same method as vendors use to calculate prices and is accepted by all vendors as a valid price control mechanism.
Our method has been refined over the last 10 years, and is able to deliver price insights and comparisons for comparable market prices.
What you get from a benchmark
Full documentation of the contract in Zangenberg Analytics’ framework, which is acknowledged by the market as the leading benchmarking method.
Benchmarking of the prices compared with market prices based on the latest quarter.
Advise on optimisation initiatives you can take to ensure that your prices are in line with market prices.
At Quarterly Analytics we source all of our market price data points from the benchmark database of our sister company, Zangenberg Analytics (with AWS, Google and Azure public cloud pricing as the only exceptions).
Founded in Copenhagen in 2010, Zangenberg Analytics has one of the largest benchmark databases of active contracts in all of the Nordic countries covering both public and private sector clients. Zangenberg Analytics’ benchmarking model and data is widely recognized not only by companies benchmarking their contracts but also by the local and international vendor communities.
Like Quarterly Analytics, Zangenberg Analytics provides services to several of the largest global and regional IT-outsourcing vendors. The benchmark model calculates benchmarking prices for contracts the same way IT-outsourcing vendors calculate their prices: based on unit prices for the individual components of the agreement, the scope, SLAs as well as the contract terms and conditions. The model is updated quarterly and all newly entered price points are validated by repeated observation.
The Zangenberg Benchmark Database consists of more than 175 unique components and more than 2.000 parameters including:
Storage and Backup