ISI's Telecom Audit Identifies $1.1m in Savings for CDW / Berbee
November 27, 2012
By Susan J. Campbell
TMCnet Contributing Editor
The average business competing in today’s market relies on communications to support revenue initiatives, maintain partnerships, and drive collaboration. As employees become more mobile, access to technologies and features that support communications on the go are also a priority. And, while every organization wants to equip its team with the right tools for getting the job done, accountability is also key for controlling costs. To that end, an audit helps to maintain a balance between necessary communications and excessive use.
A recent ISI Telemanagement Solutions (News - Alert), Inc., case study focused on CDW (News - Alert)/Berbee, an IT solutions provider that was enjoying significant market success, but was plagued with high telecom costs. In order to ensure costs were being maintained, the company had been working with carriers to review telecom invoices on a monthly basis. While company leaders were pleased with this approach, they also realized additional savings were possible with the right tools.
Even as CDW/Berbee (News - Alert) recognized the potential for reduced costs and improved performance, management questioned whether or not a deeper investigation would produce results to warrant an additional drain on resources. They weighed the benefits of the project to determine if it would produce actual cost savings, while examining the amount of time it would take to achieve anything measurable. One major concern was the amount of staff needed for the process and if business would be interrupted.
ISI was approached by CDW/Berbee to perform an in-depth Telecom Audit. This process allowed for a more granular approach to communications spending, and the company was able to identify hard cost savings opportunities of $1.1 million in first year telecom cost savings (more than 30 percent of expenses reviewed). For instance, a rate stabilization error, with a two year history in long distance billing, was identified. Also identified was leased equipment that had been overpaid for 32 months. These costs were recovered and the company assumed ownership of the equipment.
Other identified (and subsequently solved) issues included the discovery and elimination of point-to-point circuits not in use, and the elimination of low-use and costly call/feature packages. As a result, wireless solutions were put in place to reduce costs by an additional 20 percent.
The Telecom Audit process also included contract and tariff optimization, as voice and data contract terms for both fixed and usage-based components were examined. ISI negotiated optimal and long-term pricing available for new and renewal contacts, and identified those locations not included in current contracts. Desired terms for those regions included in a planned expansion were also established.
In moving forward, ISI also helped CDW/Berbee to develop a cross-contributory structure for all their services. This included:
- Evaluation of different pricing and service delivery models
- Enhancing market competitiveness and overall profitability
- Establishing a reduced and better controlled cost structure for customer related and administrative services
- Provision of tools to complete ongoing analysis
- Validation and tariff optimization
- Assistance with the development of methods to benchmark, compare and optimize costs and usage within departments
- Introduction of new methods for managing vendors.
As a result, CDW/Berbee developed the necessary skills and telecom optimization strategies to have a better handle on spending, and a greater knowledge of contracts and activities related to the use of their own resources. In doing so, the company was better able to enjoy the benefits associated with quality communications and focus on core competencies to drive revenue.
ISI Telemanagement Solutions (News - Alert) Inc. is committed to providing solutions designed to increase organizations' efficiency, productivity and profitability, by providing reporting and recording tools for enhanced telecom management. We understand that each company's needs are unique and, therefore, we provide a robust set of tools to address every situation.
ISI's Solutions portfolio brings together time-proven technologies to report and record on your voice and video communications, including real-wireless and landline Call Accounting & Reporting, Telecom Audit & Optimization, Voice & Video Call Recording, Invoice & Inventory Management, and Wireless Management. ISI's facilities, processes, and data security comply with ISO 9001:2008,SAS (News - Alert) (News - Alert) 70, HIPAA, Safe Harbor and other important standards.
Edited by Rich Steeves