Success Story - "Telecom Cost Reductions II"
$750M e-Commerce company providing e-payment, investment management and outsourced service solutions to financial services organizations
Company Situation and Problem
Telecom costs and contract management were very fragmented providing a considerable supplier consolidation opportunity.
Paladin Actions & Recommendations
Quickly earned the confidence and respect of the client’s sourcing and telecom teams as well as the carrier’s account management, and rapidly gained a full understanding of telecom costs, vulnerabilities, and savings opportunities. Completed detailed analysis of pertinent contracts and audited invoices from 12 suppliers, then performed cost analyses of usage and tax/fee savings opportunities. Met with 3 key suppliers and developed a strategy to elicit significant cost reductions, then initiated incumbent supplier negotiations, providing direct input on target voice and data service rates. Negotiations resulted in savings from each supplier.
- Leveraged major incumbent voice and data suppliers to write-down rates an average of 35%, including taxes and fees.
- Negotiated improved contractual language.
- Made staffing recommendations and assisted client in evaluating new provisioning and billing system.
- Assisted client in developing new SLA document for carrier-managed VPN service.
- The client’s rates are now leading edge without the disruption of converting services.