Basic Materials, International, Energy & Utilities, Wireline
This G2 client is one of the largest international oil and natural gas service companies. The company provides products and services for drilling, evaluation, completion, production and intervention of oil and natural gas wells, along with pipeline construction and commissioning. Headquartered in Switzerland, our client operates in more than 100 countries across the globe and employs more than 60,000 people.
G2 was engaged to negotiate their global MPLS network, comprising of over 60 countries, across seven operating regions to include Africa, LATAM, EMEA, North America, APAC and others.
Verizon enjoyed a twenty-plus relationship as a primary carrier, providing year-over-year Annual Rate Review reductions to ensure market competitiveness. Their seasoned Account Management was onsite on the customer premise with a long-standing relationship with key personnel across IT and Sourcing.
G2’s primary negotiation strategy was to conduct a multiple carrier RFP. Our negotiation strategy is primarily to leverage the incumbent effectively in order to avoid costly network migrations. The customer was willing to open its business to non-incumbents, but would consider network transitions only if technology, quality and most-importantly, savings merited the award.
Invited carriers included Verizon, AT&T, Vodafone, SingTel and TATA. Each had the opportunity to bid upon the entire network, with G2 effectively negotiating the resultant awarded carrier volume commitment structure to ensure maximum client flexibility.
G2’s pre-negotiation assessment concluded that individual rates elements were out-of-market as low as 25% to upwards of 75%. The client recently decentralized IT management and all regional leadership took part in the network design and carrier award. G2 supported all functions of the RFP to include creation of negotiation documents, carrier technology presentations, analytics, benchmark intelligence, leadership and carrier legal review of terms, conditions and liabilities.
The optimal carrier award across four providers yielded a 52.7% reduction. The customer elected to slightly modify this optimized approach to allow for better regional management (all networks were integrated). The entire existing network was replaced by four carriers, each specializing and having core strengths in specific global regions. G2 achieved full waivers of class of service (COS) and migration costs.