Many of our clients are reluctant to spend time tendering large and complex service provisions from telecoms providers. We aim to show our clients the benefits in reviewing the market from various perspectives; service quality, technical innovation and pricing. Typically contract terms tend to be 3 to 5 years so the opportunity to benchmark costs and service levels is a priority.
The challenges thrown up by the tender process:
Resource As a tendering process is in addition to the BAU tasks, the availability of the project team is a key consideration
Time Allowing enough time to review the WAN market
Risk Fears around service continuity issues, attachment to incumbent vendor staff, familiarity.
Agreeing on the strategy can be a challenge when it comes to the wide range of market options e.g. single v’s multi supplier provision and point solutions v’s multiservice.
For a strategic, business critical service like WAN, influencing senior stakeholders and gaining their buy-in is half the battle. The cost of WAN and related telecoms services regularly represents up to 35% of our clients networks category spend. On these longer term, multi-million pound contracts senior executives are typically involved on a peer-to-peer level with suppliers like BT so stakeholder management is key. We have supported our clients in developing business cases that help with persuading these senior stakeholders of the benefits of considering other suppliers.
High level benefits of performing a market review include:
- Decreasing technology costs have brought unit pricing down year on year
- Keeping the suppliers focused on providing a quality service
- Proactive account management
- Implementation of new innovative technology and ways of working
Some of the challenges our clients have experienced in their commercial relationship with BT and other major WAN suppliers:
- Deployment & Risk Management
- Exit management
- Account management changes
- Service outages
- Technical support
- Service Levels
- Consider Multivendor solutions for WAN – multiple options and room for negotiation
- Selective sourcing for the flexibility of taking best in breed rather than a one-stop solution
- Clearly define the timeline for deployment and go-live upfront, planning for exit
- Define operational issues in the contract e.g. billing
- Resource planning e.g. naming key personnel
We support our clients in formulating a structured approach to reviewing the market. Turnstone provide resource for over-stretched procurement and IT teams so that market knowledge can be collated, analysed and presented in a robust opportunity assessment.