Veropath delivers significant telecom expense reduction for a large global Financial Services corporation
Veropath used a combination of their MS Azure-based software platform and their own market expertise to provide clarity and visibility of the estate and drive significant savings back in year one through telecom expense reduction with further savings to come.
The client is a UK-based element within a large US-headquartered global Financial Services corporation. This department was savings-focused and had become increasingly frustrated by its lack of visibility and control of the significant telecom spend going through their P&L year on year.
Prior to contracting with Veropath the customer was in a cycle of “stare and compare” invoice validation and approval, with $8m annual spend in their EMEA region on telecoms and no real detail or visibility behind the charges. They didn’t know what was making up the detail of the cost.
There was a disconnect within the organisation because telecom services were negotiated by a centralised internal Technologies team along with the Procurement department, but with little involvement from the business unit that was using those services. Furthermore, the responsibility for validating, approving and paying the invoices lay with the business unit that was using the services.
The business unit leaders were concerned about challenging costs and were fearful of the impact of any service interruptions, so they were using high-level threshold invoice validation to pass invoices for payment each month.
How Veropath helped
The customer issued simple Letters of Authority which enabled the Veropath team to work directly with the Suppliers and required little involvement from the customer, so allowing them to continue with their other business focusses. Within 3 months Veropath had loaded and analysed some large data sets across multiple telecom providers, including overlaying billing data with complex inbound routing plan information also provided by the telecom providers.
This allowed Veropath to normalise the data and present back a complex inbound environment to the customer via the Veropath TEM portal in a clear and logical way, and additionally relate the data back to the contracts and tariffs the customer had entered into with their suppliers.
By providing clarity and visibility on the data and by loading the contracted tariff, Veropath were able to re-price the data and identify significant historical billing errors. In addition, Veropath provided clarity on how calls were being routed in the customer’s environment, allowing them to drive savings by optimising the routing of certain call legs from off-net to on-net.
Through requesting details of tariffs and contracts with the telecom providers, Veropath quickly benchmarked services and support the customer in obtaining a significant telecom expense reduction of over 50% on some services that had not been reviewed for some time.
By loading historical data Veropath were also able to identify patterns of usage including zero usage services no longer required which have been subsequently ceased by the customer.
The project has effectively forced a collaboration among the business unit, the technology team and procurement and all are now benefiting from the results.
Results, Return on Investment and Future Plans
To date the customer has benefited from a $1.6m annual telecom expense reduction in year 1 with $850k made up of historic rebates due to billing errors, and $750k being ongoing future savings through optimisation of call routing and contract renegotiations on both recurring circuit rental costs and call charges.
In terms of ROI this represents a 650% return in year one with at least 535% in both years 2 and 3; there is also further potential to save with more suppliers and areas still to be fully analysed.
In addition to the financial benefits achieved to date the customer now has a much better understanding of their overall telecoms estate and specifically their inbound call routing, and are confident that their invoices are being validated and they are being charged correctly going forward.
Future plans include identification of further savings, consolidation of billing accounts and accountability and ownership of services internally within the relevant business units.
Due to the success of the project in the EMEA region the customer has now requested that the scope of the project be expanded into additional regions.
As part of the expansion proposal the customer has requested that management of the Veropath application be transitioned to their own internal team which is resounding reflection of Veropath’s intuitive user interface coupled with feature rich and class leading software.