Case Study 2
Global High-Tech Company
The IT department of this highly regarded global high-tech company was tasked with reducing its annual telecom budget by $500,000. While they believed that an external telecom audit could help lower telecommunications costs, they were uncertain whether their goal could be achieved without reducing staff.
To address this challenge, TelOptimize was engaged to conduct a comprehensive audit of the company’s telecommunications expenditures across North America. The audit process began with the rapid collection of billing records, service records, and configuration records for all locations. Using this data, TelOptimize built a detailed Inventory of Services, covering local, long-distance (LD) and toll-free (TF) services, WAN, internet, and wireless. Once completed, the inventory was reviewed with the client before proceeding to an in-depth analysis of their telecom usage.
Within two months, TelOptimize completed its analysis and presented a detailed report of key findings:
- Long-Distance (LD) Rate Increases: The client’s U.S. LD service rates were not fixed for the duration of their three-year contract. Within the first 18 months, the carrier increased base rates by 18%.
- Mismatched Contract Terms: The client’s U.S. LD contract did not align with actual call patterns. While they received competitive interstate rates, over half of their LD calls terminated in Canada, the U.K., and China, where they were charged standard guide rates instead of negotiated rates.
- Underutilized and Oversubscribed Local Services: Traffic studies revealed inactive or underutilized local services at headquarters, while other locations had oversubscribed services due to changes in applications, locations, and organizational restructuring.
- Internet Overbilling: The client was overbilled for internet services compared to the provider’s original quotations.
- Unnecessary Toll-Free Charges: The company was invoiced for monthly recurring toll-free service chargesthat were never requested or used.
- Excess Local Capacity: Many U.S. sites retained unused local services after workforce reductions, failing to adjust their service levels accordingly.
- Missed Opportunities for Rate Negotiation: The client exceeded their annual LD service commitment in Canada within the first five months, making them eligible for immediate rate renegotiation instead of waiting until the end of the contract term.
Upon approval, TelOptimize optimized the client’s local services at headquarters and multiple U.S. locations, securing refunds for overbilling on internet and toll-free services. More importantly, TelOptimize successfully renegotiated the client’s LD agreements in both Canada and the U.S.. This resulted in compensation for the failure to align contract terms with actual call patterns and volumes.
Results:
- $245,000 (CDN) in refunds
- $49,000+ (CDN) in monthly savings
- Full achievement of budget reduction targets
- No staff reductions required
By leveraging TelOptimize’s expertise, the client not only exceeded their cost-saving goal but also ensured a more efficient and cost-effective telecom strategy, all while retaining their workforce.