Client
A NASDAQ-traded software company focused on corporate data security with operations all over the world.
Business Challenge This company wanted to eliminate non-core processes by its internal staff. Telecom expenses represented a major portion of indirect overhead and management wanted to apply a rigorous cost optimization program. Expense monitoring was a shared duty between IT and Finance which resulted in poorly divided tasks and responsibilities.
This customer spent over 60% of its annual budget under one contract and purchased 20 different products/services from a Tier 1 provider. There were no contract monitoring efforts in place and multiple amendments to the original agreement exacerbated the problem. Mitigating the financial and business risks of this major contract was management's top priority. The proposed solution had to fund itself because no budget had been allocated for a telecom expense management initiative.
Solution
Our team combined telecom audit, contract optimization, and outsourced services to create a total solution for this technology firm.
Outcomes
Recoveries totaled 9% of annual spend
New contract with its principal provider produced 40% savings
Payment file integration with company's SAP
Improved supplier management with web-based access to key supplier contracts and spend data
