Over the holidays we were discussing ideas for cost savings and what would save customers money. Then the attention turned to SIP trunking and back again to the carriers. Later, I had a couple of conversations and then a conference call with Lory Johnson of Teleplus Consulting.Since there's a favorable movement of implementing SIP services I thought after speaking with Lory that even though there are enticing savings by changing traditional telephony services, what about the carrier? You see, the carrier contract may still be the single point that isn't negotiated favorably in behalf of the client. So when I spoke with Lory about having someone on the customer side representing the customer it reminded me of the complexity and difficulties associated with large enterprise contracts.
Teleplus Consulting focuses on telecom contracts of $1M per year or more. Their exposure to large contracts gives them a view not shared by many and is beneficial to all their clients regardless of size. They typically work on contingency fees, so it is in their best interest to determine quickly if they can help you. If they can help you, they cite that they typically see a 30-50% savings. This goes back to a combination of the right technology, like SIP, and the right terms and pricing. Carriers are often eager to move customers to new technologies that save the customer money and yield even higher margins for them. Lory was quick to tell me that many enterprise users don't really want to change carriers--they just want a lower price.
The other obstacle is the RFP process. Most large customers have a good idea of what they want. If the RFP can be eliminated, often, months, and many thousands of dollars can be saved. Lory said partnering with a consultant brings you a team member that already knows what the end price should be. "The RFP, in many cases, is just the starting price," he said. If the company is satisfied with the carrier, then on renewal is the company getting the best deal?
But Lory cautioned me that the contract negotiation process isn't just about price. Other terms and conditions impact the business and have an overall value to the enterprise. Teleplus Consulting works with voice, data and wireless services and with national and global companies. With contracts of this size it's in their best interests to protect yours because ultimately the more money they save you the more they earn.
Some companies take issue working with a contingency and often opt to let the internal law department or legal specialists working for the company deal with these contracts. Lory pointed out that their job is to partner with the company's specialists, not compete with them. He said Teleplus was happy to see if they can add any extra value after the company's people have gotten what they think is the best terms and rates. Wouldn't it be nice to get a savings from both the carrier side and from transitioning traditional telecom services over to SIP? Fee for performance I can live with, especially knowing that what I don't know is potentially going to cost me money.
