Telecom Expense Management
Our unique approach to TEM leverages our deep knowledge of providers, their channels, and best-of-breed TEM management platforms.
Recent Success Stories – Use Cases
Sourcing Advisory for Telecommunications and Network Services
Sourcing advisory for telecommunications involves a multi-faceted approach to achieve the best pricing, contract terms, and service levels for network and telecom (“network services”) contracts.
Unlike other suppliers of IT infrastructure, network services suppliers maintain very complex sales and channel organizations and offer highly diverse routes for contracting, billing, and support.
This diversity creates inefficiency in terms of pricing and contract quality.
RampRate’s goal is to remove pricing inefficiency and increase contract quality, and in order to navigate these complex sales and service channels, RampRate’s Network Services Group (“RNS”) employs the following methods: billing audits, supplier channel integration, and direct supplier negotiations.
These techniques operate as follows:
- Billing Audits: Telecom and network bills and service level reports are analyzed for errors and service level issues. Errors and service issues are used for financial recovery and help create points for improved contract terms upon renegotiation. This is performed by RampRate and partners who specialize in billing audits.
- Channel Integration: Telecom and network suppliers allow third parties to become full service sales and support organizations that can sell, order, provision, and provide relationship support for optimization of relationship with the suppliers. These channels are funded by commissions earned for managing and supporting the client relationship with the supplier. Channel integration typically reduces pricing significantly.
- Direct Negotiations: Some clients are maintained solely on a direct basis by a supplier and aren’t permitted to use a channel partner. In this case, RampRate utilizes its SPY Index database, along with data from partners, to lead direct negotiations with suppliers.
Telecommunication Services Master Contractor
The diverse needs within the telecommunication practice have become highly specialized. While many providers offer a full range of services, RampRate has found that most providers excel in a particular key area, and different providers can be better suited depending on the particular engagement. Moreover, there can be inherent conflict of interest in these different roles that is best addressed by engaging multiple independent suppliers.
RampRate’s practice is modelled as a Telecommuncation Services Master Contractor. Ramprate has no qualm with augmenting its own sourcing experise with that of specialized telecommuncation providers. This approach ensures our clients have best-of-breed solution for each part of the telecommunication services puzzle, and avoid potential issues with a single source provider. The result gives our clients the best possible outcome in an accelerated timeline, while avoiding a length review process for multiple suppliers in multiple different areas of specialization.
Ramprate Network Services and Partners
Channel Integration is the addition of sales, support, and service capability above and beyond the resources of a supplier’s direct solo sales representative. RNS channel partners are volume channels of the telecoms and have faster and deeper access to pricing options, support, and services within a telecom provider due to their size and long history as key channel status at the supplier. RNS has a goal to determine if there is a business case to improve the relationship between the supplier and client.
RNS utilizes various partners, and will inform the client of which partner is involved before they are utilized on a client’s behalf. In all cases, RNS and its partners will have a Letter of Agency, signed by the client, authorizing RNS and its partners to request bills, contracts, service records, and negotiate on behalf of the client.
Since a RNS and its partners are third parties working directly with a client’s suppliers, strict rules of engagement are followed. These rules are enumerated for the client to prepare the client to deal with the fallout of channel conflict that arises from inefficiency and organizational structure problems within the suppliers. Channel conflict occurs when a client has the option to use a channel partner as well as direct sales representatives for ordering and support. When a direct sales representative learns learn that their client has employed a professional sourcing organization and channel partner to optimize the contract, they may attempt to prevent optimization
This attempt often manifests in confused communication to the client. Any reports from direct sales representatives communicating anything outside of what is described in our rules of engagement should be viewed as inaccurate. Attempts by any party within a supplier to derail optimization is proof that optimization will yield a better contract. Clients can always continue to place orders with their direct representations. The addition of a channel partner simply provides more options for the client to attain a better quality contract.
Paul Santana, Manager of Data Center Operations, eBay
“RampRate was a risk-free proposition money-wise. If they didn’t save or create us at least twice their initial fee we’d get a full refund. And with 100 big-name clients, there had to be something there. But I was worried that in negotiating lower rates they might undermine my key relationships. When they came in and said they could carve out 27% savings and optimizing contracts, I thought it was impossible without undermining key relationships. But they hit that number and the relationships are stronger than ever.”
Phil Wiser, former CTO, Sony Corporation of America
“RampRate helped us understand the differences between vendors and worked with us to create the methodology, define the metrics and utilize the proper QoS tools needed to choose the vendor best suited to our needs. RampRate knows this business better than anyone. We literally months of time and found the right provider.”
Dean Nelson, Vice President of Global Foundation Services, eBay
“I knew I was leaving a bit on the table in our outsourced contracts. But the corporate mandate is growth and innovation, and when further contract improvement seemed to be marginal, my team’s first priorities had to move elsewhere. We can count on RampRate to be precise, timely and create millions in value.”
Michael Montalto, Accenture
“I have had the pleasure of working with the crew at RampRate several times over the last several years. Each time they have saved significant time in negotiating and closing contracts for data center space and managed services, which provided at least 20% savings over what we could have done alone. The RampRate team are extremely knowledgeable in this space and always bring innovation and out-of-the-box thinking to the table.”
Ian Rodgers – CEO Beats Music
“When we first contacted RampRate, we were happy with our current provider but unsure of their ability to scale with our growth. We turned to RampRate for help in sorting out the market specifically as it relates to our needs for scalability and performance. The difficult part for us was making the final decision to split with our current provider (with whom I’ve done many years of business) or move on the deal RampRate had put together for us. Our previous provider couldn’t touch the price or level of service I was receiving with RampRate and in the end it was a no-brainer. Within 30 hours of our decision-making, we were fully installed and up and running. Not only did RampRate save us an incredible amount of time, resources, and money, but also we know we have the best possible solution for our needs now and far beyond.”