Most organizations pay 20% to 30% more than they should for telecommunications services. What causes a company to overpay for voice and data network services?
- Contracts that have passed their initial term but have not been renegotiated.
Typically, once the initial term expires, companies can renegotiate their pricing.
- Outdated services that should be replaced with more cost-effective technologies.
- Unused services that should be disconnected.
These services are typically lost in a haystack of other services on invoices that are rubber-stamped and paid without question every month.
Simplify recently helped a healthcare provider significantly reduce circuit costs while increasing bandwidth and adding redundant circuits. Here are the results:
Overall Savings 44%
Circuits Doubling Bandwidth 55%
Circuits Quadrupling Bandwidth 11%
Locations Adding a Redundant Circuit 34%
Cost Per MB Reduction 73%
How can an organization identify and realize savings on their telecommunications expenses?
- Get help. Sifting through every line item on every invoice from every provider for every location requires an intense, short-term effort. Your staff probably does not have the bandwidth to perform this task amongst other priorities (otherwise it would already be done). The right partner will take on this task on your behalf.
- Break down costs. Review every invoice and carefully document exactly how much you are spending at each location. Quantify and categorize costs by service provider, service type, bandwidth, etc.
- Compare your costs to the market. Gather competitive quotes from other vendors and compare to your current costs.
- Identify savings opportunities. Identify your top savings opportunities and determine your best strategies. Should you renegotiate with your existing provider or should you shift to a different technology with a different provider?
- Execute. Establish goals...how much savings will you achieve and in what timeframe? Put your plan into action.
All five of these steps require a significant spike in effort and time. Rather than overload your staff, consider engaging Simplify as a partner. We can apply our vast experience, processes, tools, and staff to help you achieve reductions in your telecommunications costs.
Published on Thursday, August 22, 2019 @ 5:59 PM CDT