Case study viii · ServiceNow · Renewal Strategy · Fixed Fee

Public sector body cuts its ServiceNow renewal 41% through module consolidation.

A large public sector body with 18,000 users across seven ServiceNow modules approached renewal at $13.8M annual spend. ServiceNow proposed $16.4M including a GenAI bundle, while several modules bought under prior CIO initiatives showed limited active use.

Result · $5.7M Annual Savings

The engagement

What Admodum did.

Utilisation audit across all seven modules and 18,000 users.
Identified three modules — HRSD, SPM and ITAM — with under 15% active use.
Ran module-by-module business case reviews with the module owners.
Established that ITSM Pro could absorb 60% of the cut functionality.
Built the renewal package and negotiated directly with ServiceNow procurement leadership.

The outcome

What the client achieved.

New three-year contract at $8.1M annual against $13.8M prior.
$5.7M annual savings; $17.1M over the term.
Three modules cleanly eliminated; ITSM Pro absorbed the required functionality.
GenAI pilot scoped at a controlled $600K annual.
Completed in 6 months.

The lesson

What the case teaches.

Module-based pricing accumulates. Most enterprises with three or more ServiceNow modules carry at least one that can be consolidated without functional loss; module-by-module review typically finds 25–45% optimisation.

Engagement details

How it ran.

Duration: 6 months
Team: 2 senior advisors
Model: fixed fee ($195K)
ROI: 29x

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Independence

Client identities are anonymised under engagement-letter confidentiality. Admodum is not a partner, reseller, or affiliate of ServiceNow, or of any other software vendor.