Expert Negotiators of World-Class Telecom Contracts

Immediate Savings in Today’s Economy

A well-respected, nationwide research firm recently interviewed our company for a comprehensive study they are releasing in the fall. The purpose of the study is to define where businesses can find the greatest savings, in the shortest time, with the fewest resources and the smallest impact on business. The state of the economy commands no time is wasted introducing one of their primary findings.

Mid-Term Telecom Contract Negotiations can provide immediate savings in one of your largest costs of doing business. This project can be completed in as little as six to eight weeks and is essentially a financial exercise because there is no impact to your carrier relationship, strategy or infrastructure.

As professionals we negotiate hundreds of mid-term, incumbent-only negotiations year after year. Our results in the first two quarters of 2009 shows evidence of greater reductions in mid-term negotiation savings than over any other annual period. Compared to 2008, average mid-term client savings was up 18% above our trending over the past decade. The carriers do not operate in a vacuum safe from the effects of the economy. Just as their enterprise clients are dealing with financial strains the carriers themselves are saddled with revenue and operating expense concerns. It is evident that the carriers are highly motivated to minimize client churn and secure long term revenue through extended client agreements.

Consider the following key elements when evaluating this opportunity to reduce costs:

  • Contract pricing, terms and conditions change, not infrastructures or carriers.
  • A competitive RFP is not necessary to leverage carriers for world-class pricing. (Seehttp://www.g2inc.com/endterm.html for more information)
  • Term extensions may not be required and would only impact business if your long-term strategy required a major network migration.
  • If the negotiation process is properly controlled, savings can be realized in as little as 60 days.
  • Any delays result in lost savings that can never be recovered.
  • Existing carrier commitments can be minimized and improved.
  • Corporations may employ various methods to decrease costs, but most of these exercises result in harsh penalties or cost outlays – telecom negotiations do not.
  • Pure upside, no impact to business, very little risk.

Mid-Term negotiations are necessary to truly maximize long-term savings. A profound misconception regarding mid-contract improvements is the belief that carrier leverage only exists in a competitive environment or at the end of contract term. Conversely, skilled negotiators can impose proper pressure and motivation at any time on the vendors to produce leading-edge pricing and best-in-class terms and conditions. The business proposition is simple: why wait for savings that you can have today.

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