Challenge

A global tech company faced supplier pressure to apply Cost of Living Adjustments (COLA) across a large, multi-year SOW—despite already paying above-market rates.Without access to market-aligned labor cost data, the organization lacked the leverage to challenge proposed increases and risked further cost inflation.

Solution

The organization leveraged TDX Rate Intelligence to establish true, market-based labor costs across roles and locations.
With data-backed benchmarks, procurement was able to challenge supplier assumptions, decouple COLA from actual labor market conditions, and renegotiate pricing aligned to current market rates.

Impact

• $3M in realized savings by preventing unnecessary rate increases 
• Eliminated information asymmetry with transparent, market-based benchmarks 
• Strengthened supplier negotiations with data-driven cost validation 
• Reduced exposure to ongoing rate inflation in multi-year SOW agreements

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