Value Sourcing Group

Budget concerns? Lower Your Telecommunications Monthly Expenses!
In the midst of an economically challenged business environment, many corporation’s IT departments are faced with budget cuts, potential layoffs, disruption to application rollout schedules and critical projects delayed due to lack of funding. CIOs and CFOs are facing a daunting challenge: How do we Save money, Expand our network capabilities and Improve service to our internal clients all at the same time? Seems counter intuitive but is very possible - if not a guarantee.

Contract negotiations for current telecommunication network services will produce reduced costs and relief for taxed budgets. Any contract past the mid-point of the current term is a prime candidate for renewal.  But, it is not as simple as just asking the incumbent carrier to provide reduced rates. Due diligence must be performed to ensure market place rates will be ultimately provided. A careful strategy must be developed to ensure optimum leverage is identified or created. A review of future applications and requirements must be conducted to ensure the proper sizing of network bandwidth is considered.

Lastly, professional assistance must be enlisted to offset the incumbent carrier’s standard operation procedure for contract renewals - they will not offer the best deal directly to their imbedded base of customers. Studies by leading IT research organizations have demonstrated experienced third party telecommunications consultant support will yield twelve (12%) to twenty (20%) percent higher savings than clients will obtain on their own in these situations. In short:

  • benchmark current rates
  • develop a negotiations strategy
  • conduct a network architecture and design assessment
  • proceed with aggressive professionally supported contract negotiations

Telecommunications services pricing continues to decrease year over year as carrier’s costs decline, capital expenditures are recovered and competitive pressure from alternate providers and new services materializes. Recent re-negotiations of telecommunications contracts have yielded as high as a fifty-three (53%) percent savings while keeping all the services with the incumbent carrier! The average cost reduction and subsequent budget savings has historically been in the thirty-five percent range (35%). Although not quite as simple as obtaining a “rebate” for your services, the end result is much the same – reduced monthly expenses for the same or expanded network services.