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.