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.
$10M
in cost
reductions
800
hours productivity
gains
23%
estimated mobile
savings
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:
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 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.
