Financial Firm Leverages RFP Experts to Save $10M on Telecom Contracts

RFP and contract negotiation services score back‑to‑back savings over a 3‑year period

The Challenge: End-to-end RFP Management and Direct Negotiations

One of the leading financial services providers was so successful in driving telecom savings through its first RFP project with Tangoe that it decided to do it all over again 3 years later. This is their story of dual success.

In 2020, procurement and IT leaders recognized the value of their existing telecom contract. After all, their incumbent carrier was supporting the bulk of the firm’s customer service phone calls — 360M minutes per year. But the team needed to leverage their heavy spending as negotiating power when their contracts came up for renewal.

The firm asked for an RFP management project that would engage eight different telecom carriers to aggressively compete for their business and bring the best deals to the table. In the end, Tangoe’s Advisory Services delivered $6M in annual savings, finding the optimal rates under a new, superior telecom provider.

Three years later as these same contracts came up for renewal again, the firm returned to Tangoe for another round — another RFP with the same eight carriers. Given the history of success, Tangoe’s negotiators were in the best position to rapidly move forward. However, a second win can sometimes be more difficult, because terms and rates have already been optimized. At this point, Tangoe’s expertise in negotiating 400 annual contracts became crucial for replicating savings at a scale that would have meaningful financial impact.


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The Solution: Proven Practices Seal the Best Deal

Negotiation experts kickstarted the process as they did in 2020 by performing a deep audit of the firm’s telecom circuits, spending, and service usage habits. Effective baselines, including accurate inventories, were essential in creating an RFP to satisfy business needs while reducing costs. Here are other ways Tangoe delivered the most competitive rates and contract terms:

  • Benchmarking Costs: Experts compared their existing costs to market-leading prices to clearly define their savings potential. Tangoe monitors and tracks $34B in IT spending, arming clients with competitive intelligence including a telecom pricing index, pricing trends, and discounting models to sharpen negotiation angles. Now, the firm knew exactly what the going rate was.
  • Applying Pressure: Tangoe made a strategic move in holding a bidders’ conference for all invited carriers to join and ask questions about the RFP. In doing so, carriers could see their competition.
  • Comprehensive Management: In handing the RFP from start to finish, Tangoe ensured the quality of the questions and the speed and responsiveness of the process, accelerating time-to-savings.

Tangoe’s negotiators directly engaged with each carrier, narrowing contenders by providing an analysis of each offer. In staying persistent through multiple rounds of negotiation, the lowest possible prices and the best contract terms were reached.

The Outcome: $4M+ Additional Savings, 800+ Hours in Time Saved

The firm’s second RFP project proved equally successful as the first, with $4M+ in annual telecom savings. Combined with $6M in savings from 2020, they recognized a total $10M+ in cost reductions. Additionally, Tangoe relieved the team of an estimated 800 hours of work. In moving forward, the firm has asked Tangoe to review their mobile contracts too with initial estimates showing a 23% savings potential. The team continues to work together to find new ways to cut costs.

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