CASE STUDY 01 : How we delivered $16M savings from a single professional services cost reduction program

​

The Challenge

​

Professional services spend had grown significantly across consulting, advisory, legal, recruitment, and contingent labour providers.

​

Over time, supplier arrangements had become fragmented. Contract terms varied across vendors, rate increases had accumulated without challenge, and new engagements were often approved without a consistent view of business priorities or overall spend.

​

Leadership recognised there was an opportunity to reduce costs, but wanted to avoid the blunt cost-cutting measures that can disrupt critical projects and damage stakeholder relationships.

​

The challenge was clear: deliver meaningful savings while protecting the initiatives that mattered most.

​

The Approach

​

Rather than focusing solely on supplier negotiations, a structured cost reduction program was established to address both supply-side and demand-side drivers of spend.

​

The program began with a detailed review of professional services expenditure, supplier contracts, active engagements, and upcoming project commitments.

​

Working closely with senior stakeholders across the business, every major engagement was assessed through a commercial lens:

• Is this work still aligned to current business priorities?

• Can the scope be reduced or delivered differently?

• Should the work proceed now, be delayed, or be stopped altogether?

• Are we paying market-competitive rates?

• Are suppliers delivering the value expected?

​

With a clear view of priorities established, a series of commercial negotiations were undertaken across key suppliers, focusing on:

• Rate reductions and pricing optimisation

• Improved commercial terms and conditions

• Enhanced rebate and value-sharing arrangements

• Rationalisation of overlapping supplier engagements

• Stronger governance for future spend approvals

 

The Outcome

The result was a significant reduction in professional services expenditure without compromising the organisation's strategic objectives.

​

Approximately $16 million in commercial benefit was delivered through a combination of contract renegotiations, rate reductions, rebate improvements, supplier optimisation, and demand management initiatives.

​

Beyond the immediate financial outcome, the program also created lasting improvements by introducing greater transparency, stronger governance, and a more disciplined approach to engaging external service providers.

 

Impact

$16M+ Commercial Benefit Delivered

Improved Commercial Terms Across Major Supplier Contracts

Reduced Consulting and Contractor Costs

Enhanced Executive Visibility of Professional Services Spend

Established Sustainable Governance for Future Cost Control