Telecommunications Case Study
 

Practice - Strategic Sourcing
Sector - Banking
Category - Fixed & Mobile Voice and Data Telecommunications
Geography - Europe (across 3 countries)
Baseline - € 30m
Savings - € 7m (23%)

In the course of a recent Telecoms rationalisation and Strategic Sourcing exercise, Triton achieved savings of over 20% on a spend baseline approaching € 30m, which included fixed voice, data and mobile telecommunications. This was in a “steady-state” environment, i.e. no migrations to new technologies were employed to achieve these savings. A longer-term, “strategic” component of work complemented this with an in-depth analysis of which new technologies most closely addressed the Corporation’s existing and future requirements.

In aggregate, the savings were so great – and so swift – that, on a cash flow basis, the Telecom providers were effectively paying for Triton's (far larger in scope) project within five months of the project being launched.

Numerous levers were employed to achieve this outcome, including:

• Bringing the entirety of the telecom spend of the organisation into one negotiation
• Maximising negotiating leverage by including new market entrants into the equation
• Increasing competition by specifying technology-independent, business-oriented fixed-data service level requirements
• Optimising flows of voice traffic to minimise the number of fixed line fees to pay – an increasingly large component of the total telecom cost
• Negotiating on disaggregated prices, including time of day, point/network of origin , point/network of destination, backed up by highly detailed and up-to-date traffic analysis data