Releasing value for prominent managed services company

Challenge

A prominent managed services company in AESEAN, with a $1.7bn turnover, had concerns it was leaking revenue from its contracts. They didn't have the in-house resources or expertise to prove their concerns.

Solution

SYKE used AI technology combined with their team of contract and data experts to analyse 30,000 pages of contracts. Within an 8 week turnaround, SYKE extracted and analysed 45 data points to identify that the client was leaking $1.78m revenue.

Our analysis found:

• 50% of contracts had expired but services continued to be provided
• Renewal notices varied making it difficult to manage
• SLAs varied between 5-10%
• 89% of contracts didn't have cancellation fees
• 98% didn't have minimum spend commitments
• 66% didn't have IP clauses
• 32% didn't limit liability within approved thresholds

Impact

SYKE identified a $1.78m revenue leak within a quick turnaround, giving the client a 36x ROI. SYKE recognised immediate contract process improvements and implemented them to fix revenue leakage.