Success Stories
Global Telecommunications Company
Objectives
- Evaluate the strategies for sourcing business and technology functions, including bill generation, messaging/bill processing, rendering and the call center
- Require that the service provider build a new "billing factory" with state of the art, off-the-shelf software
- the service provider to take the financial risk of the new factory implementation and have the service provider take the operational risk of producing the bills in the old and new factory environments
- Achieve significant cost savings against the base case
- Determine the variables of the legacy fixed-costs structure
Scope
- Business process outsourcing - CRM and F&A
- ADM - Consumer billing functions including legacy systems; "new factory" development and implementation; bill, print, remittance and return mail operations; and business processes
- 1,400 FTEs
- US$4.1 billion over seven years
Results
- TPI recommended that a term sheet be used before down select to understand and confirm issues that were not directly specified in the RFP. This was key to down selecting to suppliers who would meet the company's terms.
- Two service providers were down selected: One was initially chosen because of the best financials. As it turned out, under close TPI-led investigation of financials, the decision was made to down select the other. Two weeks before contract signing, the service provider made significant changes to certain terms previously agreed upon in the RFP term sheet. Negotiations were terminated immediately.
- The telecommunications company and its chosen service provider spent three months trying to resolve the issue and associated risk. TPI's knowledge of previous transactions was a huge value-add for the company. The telecommunications company used a term sheet provided by TPI that allowed them to make a more informed down select decision. TPI supplied assistance to the negotiations both in terms of suggestions for approaches as well as industry insight into best practices.
