Global High-Tech Company

The IT Department of this highly-regarded global high-tech company was asked to reduce their annual telecom budget by $500,000. Although they felt that an external telecom auditor could reduce their telecommunications costs they were not convinced that they would attain their objective without reducing staff.

TelOptimize was contracted to conduct a thorough audit of all telecommunications expenditures across North America. TelOptimize quickly gathered all Billing Records, supporting Service Records and Configuration Records for all locations across North America and proceeded to build an INVENTORY of their Client’s Local, LD & TF, WAN, Internet and Wireless services. Upon completion, TelOptimize reviewed the Inventory of Services with their Client and proceeded with the analysis of their services.

The analysis phase of the audit was completed within two months and a report was prepared for the Client’s review. Primary findings included the following...

1. The Client’s rates for LD services in the U.S. were not fixed for the term of their contract (3 years). Within the first 18 months of the agreement their carrier increased their ‘base’ rates by 18%.
2. The Client’s contract for LD services in the U.S. did not accurately reflect their actual call patterns. The Client received very competitive rates for Interstate calls however more than half of their LD calls terminated in various international locations, particularly Canada, U.K. and China. The Client was charged standard ‘Guide’ rates for international calls.
3. Traffic Studies revealed that the Client was invoiced for numerous Local services at HQ that were underutilized or inactive while other Local services were over-subscribed. Location changes, application changes and general organizational re-structuring created a mismatch between Services and Users.
4. Client was over-billed for Internet services in comparison to their provider’s quotations.
5. Client was invoiced for monthly recurring Toll-Free service charges that were never requested or utilized.
6. Excess Local capacity was discovered at most of the Client’s U.S. sites. The Client failed to down-size their Local services when they down-sized their workforce.
7. The Client exceeded their annual commitment for LD services in Canada within the first five months of the year and was eligible to re-negotiate their rates immediately rather than wait to end of term. Upon approval from the Client, TelOptimize ‘right-sized’ the Client’s Local services at HQ and various U.S. sites and attained refunds for previous over-billing to Client’s Internet and Toll-Free services.

Additionally, and most importantly, TelOptimize convinced the Client’s Canadian and U.S. LD providers to re-negotiate their agreements prior to term and to compensate Client for not considering their actual call patterns and volumes in preparing their initial agreements.

As a result, the Client received more than $245,000 (CDN) in refunds and achieved savings in excess of $49,000/month (CDN), easily attaining their target and enabling them to retain all of their staff.