Tuesday, February 19, 2013

But I’m Under Contract? | Telecom & Wireless Contract Management

With the majority of telecom and wireless contracts being a 1, 2, or even 3 year commitment, it is common and almost certain that the majority of companies are under contract for various services at any given time.  However, even if under contract there are various ways of renegotiating current agreements, and a telecom audit can help uncover to create additional savings going forward.

Overcharges that are uncovered can help a company with time left on an agreement leverage the carrier to rip up the current non competitive agreement and do the right thing going forward to save the business.  Even with experts on staff it is a challenge to know the current marketplace without having a partner who’s been in the trenches on both sides of the table negotiating thousands of contracts, with current competitive marketplace experience on terms, conditions, and loopholes.

A couple of reasons companies pay too much for telecom:
• Most companies don’t understand their own metrics to leverage the best deal through the purchasing power they rightfully have.

• The rates are ok, but not great, who’s to know…

• The company did nothing when the contract expired.  They simply allowed it to automatically rollover at the same or even higher rates.

• The account rep told them it was their best deal and they believe it!

• They assumed that because of their size, they were getting the best rates and terms and conditions in their contracts.

• No feel for what “competitive pricing” would be in the marketplace, and negotiated own contract.

• Received multi-vendor cell phone bills – no metrics in place to compare them, signed the contracts, and were left exposed.

• Assume that local telecom companies are truly price competitive all the time.

To take full advantage of corporate purchasing power and to make certain of the very best rates, terms, and conditions in the marketplace being offered companies will seek out GSI to be the lead on an RFP for service, be hand in hand, or behind the scenes to make the carriers step up to the table with their best offers.  “GSI improved our bottom line by $3.9 Million in a couple of months by meticulously scrutinizing every last contract variable and negotiating the most favorable telecom contract we’ve ever had which included a signing bonus” (Amelia Goldacker/Adventist Healthcare).

Contact GSI for a complimentary consultation…