Impact Sourcing

Helping an Indian IT service provider optimize ERP sizing and pricing for a UK healthcare bid

When an Indian heritage provider was bidding for an ERP implementation exercise for a UK-based healthcare provider, Everest Group helped the provider with its expertise around regional and industry nuances and solution and price benchmarking for the ERP transformation program.

Client challenge

Unforeseen complexities and solution sizing

An Indian heritage IT services provider was bidding for a large-scale Oracle ERP transformation project in Europe. The program’s complexity introduced several challenges, including solution sizing, pricing, volume discounting, and negotiations with third-party partners. Despite the provider’s extensive experience in delivering Oracle ERP implementations, accurately estimating the effort for an organization with multiple sub-business units spread across the region proved to be a significant challenge.

Everest Group solution

Bringing clarity to complexity

Everest Group leveraged its proprietary ERP estimation tools to validate the initial solution sizing based on the service provider’s assumptions. This approach ensured a data-driven and objective assessment of the effort required for the transformation.

To refine the estimation further, we collaborated closely with the provider to incorporate critical client-specific complexities, such as:

Integration of disparate systems across a widely distributed organization
Existing data challenges, including inconsistencies and quality issues
The need for a robust change management framework to drive user adoption
Governance and compliance considerations critical to the project’s success

Through our independent evaluation, we delivered a comprehensive solution sizing and pricing model for this £50 million+ Oracle ERP transformation project. Additionally, we provided competitive pricing insights, enabling the provider to benchmark its offering against market trends and fine-tune its commercial strategy for a stronger bid positioning.

Results and impact

Sharper solution and improved value proposition

The service provider successfully streamlined its solution sizing assumptions, reducing excess estimates by approximately 10%, which enabled it to offer a more competitive and cost-effective pricing structure. Additionally, it engaged in strategic negotiations with the program and change management partner, a leading MBB consulting firm, to optimize its overall service fees for the project. This negotiation not only lowered the total program bid fee but also enhanced the provider’s overall value proposition, making its solution more attractive to the client while maintaining service quality and delivery efficiency.

Why Everest Group?

The client chose Everest Group as its trusted partner due to our established reputation as a leading authority in outsourcing advisory and our proven expertise in solution sizing, pricing strategy, and IT services deal optimization. Our geo-specific insights, combined with our deep understanding of solution complexity and cost structures, enabled the client to accurately right-size its Oracle ERP implementation while accounting for the regional and organizational complexities involved. Our holistic approach to pricing strategy, competitive benchmarking, and contract negotiation support ensured that the client maximized value while mitigating risks in a high-stakes, multi-region ERP deployment.