It used network services from more than 50 providers with a total annual spend in excess of $126 million. The company requested ISG’s assistance in reviewing its network spend. It wanted to consolidate its suppliers as feasible and reduce costs both in the short and long term.
Imagining IT Differently
Phase 2 was a competitive bidding event during which most network services were put to bid through a global request for proposals (RFP). ISG worked with the company to understand requirements; wrote all contractual requirements documents; managed the procurement process; conducted all vendor interfacing; and negotiated final contracts for ultimate company acceptance.
Future Made Possible
- Phase 1 resulted in new one-year contracts for existing services with AT&T, CenturyLink, IBM, Telefonica and Verizon (covering $68 million of the $126million total spend). The company received a cost reduction of $5 million per year (7% on in-scope services).
- Phase 2 encompassed a global RFP covering all services ($121 million after phase 1) which was distributed to 21 bidders and resulted in the selection of 10 primary suppliers and 11 niche providers (including 3 that were not invited to the RFP).
- It negotiated a total of 15 new network contracts during phase 2.
- Phase 2 cost reductions totaled $28 million per year (23%), additive to phase 1 reductions.