Telecoms Contract Review

Challenge

Our client needed to reduce the cost of its telecoms services. Their previous supplier had been in place for 18 years and their contract was due to expires in less than 2 years. They had a requirement for both in-year and longer-term cost savings.

A global biotechnology company

Solution

Undertook an initial review of charges to determine whether unit rates were competitive

Identified two approaches to achieving a price reduction – formal benchmark or informal negotiations

Put together an RFP for a formal benchmark and evaluated the responses of two providers

Reviewed a price reduction offer from BT and provided negotiation support

In parallel Peru identified billing inaccuracies in BT’s charges

Further, Peru identified a number of areas where the technology/service could be optimised including moving sites from 24 x 7 support to 8 x 5 and removing legacy technology.

Outcome

Reduced charges by approximately 10%

Our delivery allowed the agrochemical organisation to reduce charges by approximately 10%
Removal of a number of services that were no longer required
Correction of billing inaccuracies, ensuring the contract rates are applied moving forward
An optimised and competitive telecoms arrangement
Proactive engagement from the telecoms provider

Value

Price reductions of $3M+ per annum

The immediate savings and roadmap of further optimisation opportunities that resulted from Peru’s work were of significant value to the IT organisation.

Funding was released for the transformation programme and the IT organisation was able to demonstrate its role as a creator of value and not just a cost centre.