Success Stories

Telecommunications Company

Objectives

  • The telecommunications company renegotiated their ADM contract with an incumbent service provider. TPI helped to determine a fair price and appropriate service levels during the negotiations. TPI developed a tool to track productivity improvements that compared current productivity to the benchmark results. The tool was used to calculate savings (or cost avoidance) realized YTD.
  • TPI helped the telecommunications company reach two key objectives: to reduce the rates so they are in line with the industry average, and to increase productivity to address benchmark results.

Scope

  • ITO - ADM

Results

  • The service provider lowered their billing rates to address the benchmark results. This rate reduction saved the telecommunications company an estimated US$16 million by year-end 2004.
  • The service provider followed with an agreement to improve productivity by 15 percent over the benchmark results by year-end 2004. The service provider also agreed to a 40 percent improvement by year-end 2006.
  • Estimated productivity improvements will save the telecommunications company more than US$62 million by year-end 2006. The telecommunications company was very pleased with the results of this renegotiation and the support, insight and assistance that TPI provided. In particular, the reinsertion of productivity commitments helped to make the contract more viable and workable for the client.