PROCUREMENT 101

Uncovering Opportunities in Your Upcoming S2P Software Renewal

Introduction

An upcoming software renewal isn’t just about locking in pricing for another term — it’s a strategic checkpoint in your organization’s source-to-pay (S2P) journey. Renewals offer the opportunity to reevaluate, optimize, and unlock new value within your S2P ecosystem. Whether you're renewing with your current provider or exploring new options, here are some key opportunities to look out for. 

Making the Switch: important Considerations

Switching software providers may seem like an attractive option, especially if competitors offer lower costs or innovative features. However, the risks and complexities of switching often outweigh the potential benefits. Before making the leap, consider the following:
  • Underutilization of Existing Software: Is your current tool is being utilized to its full potential? Where there are gaps in adoption, training needs, or overlooked features, there are often ways to unlock additional value without incurring new implementation costs. 
  • Fatigue with Current System: Persistent system challenges can drive the desire for change. While switching to a new provider could temporarily alleviate frustrations, identifying and addressing recurring pain points in your current system is often a better long-term solution.
  • Change Management: Adjusting to a new system means retraining your teams, adapting processes, and rebuilding integrations, all with uncertain returns which rely on not making the same mistakes twice.
  • Total Cost of Ownership (TCO): Beyond initial licensing fees, identify and evaluate all cost factors when making your decision. This includes implementation, maintenance, and required resources. 
  • Risk of Overpromising: New providers may highlight flashy features, however, it is critical to ensure that their core capabilities align with your organization's actual needs before making the leap. 

benefits of staying with your current software 

Renewing with your current provider doesn’t have to mean complacency — it can be a strategic move. If your system is meeting your needs or has the potential to evolve alongside your goals, sticking with your provider offers several advantages:

Cost-Effective Enhancements

Many providers offer discounted upgrades or additional functionality during renewal discussions, helping you achieve more without the expense of switching.

Focus on Optimization

Instead of starting over, you can use the renewal period to fine-tune workflows, address underutilized features, and improve adoption rates.

Familiarity Breeds Efficiency

Your teams already know the system, reducing the need for retraining and minimizing disruption.

other opportunities within the renewal cycle

Beyond choosing whether to stay or switch, the renewal cycle opens the door to additional opportunities that can deliver additional value. Here are some ways to maximize your investment: 

  • Negotiate Beyond the Basics: Use the renewal as an opportunity to renegotiate terms. This might include securing favorable pricing, enhanced SLAs, or access to new modules that align with your evolving needs. 
  • Evaluate Usage Data: Conduct a detailed audit of how your teams are using the system. Are there features that remain underutilized? Could more training unlock hidden potential? 
  • Explore Integration Options: Assess whether your software can better integrate with existing systems or new tools. Streamlined integrations can significantly improve efficiency and accuracy across your processes. 
  • Incorporate Emerging Features: Providers regularly update their platforms with new capabilities. Take this time to explore innovations such as AI-driven insights or universal intake functionality, both of which can help to transform your workflows. 
  • Align Roadmap with Long-Term Goals: Collaborate with your provider to understand existing roadmaps. Ensuring their development plans align with your strategic goals helps you stay ahead of industry trends without switching platforms. 

In Conclusion: Renew with Purpose

Your software renewal isn’t just a contractual obligation — it’s an opportunity to drive meaningful change within your procurement organization. By carefully evaluating the implications of switching, recognizing the advantages of staying with your current provider, and leveraging the renewal cycle for broader opportunities, you can position your organization for long-term success. 

Need help navigating your next renewal? Optis is here to help. From evaluating your options to optimizing your software’s potential, we specialize in helping organizations uncover new possibilities within their S2P solutions. Contact Optis today to get started.

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