Published: 14 February 2024
ServiceNow renewals require appropriate lead time and a comprehensive understanding of your future business needs. Sourcing, procurement and vendor management leaders managing ServiceNow contract renewals can use this five-phase checklist to enable better commercial outcomes and value realization.
The majority of ServiceNow customers initiate the renewals process within three months of the renewal date, which compromises their negotiation leverage, results in higher costs and diminishes the business value delivered.
Customers renewing without an increase in spend are facing 10% to 15% price uplifts, positioned by ServiceNow through a combination of consumer price index (CPI) increases, innovation uplifts, price list changes, and the inclusion of ServiceNow’sImpactsuccess product in renewal proposals. Conversely, customers with more than 10% new spend are often able to avoid price increases.
ServiceNow frequently changes license metrics, product bundles and SKUs, and this often
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