Front-End Vs. Back-End Costs in Telecom Sourcing

That recently negotiated contract may not produce as much savings as you expected. Similar to buying a car with hidden fees like maintenance plans and creative financing, most telecom contracts have back-end costs that can significantly cut your savings. The carriers’ contractual sticker-prices proclaim double-digit reductions knowing they will recover margin through utilizing methods and tactics that are rarely uncovered, acknowledged or challenged.

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Leverage What You Have

Talk is not cheap. Ask anyone at a Fortune 1000 company responsible for overseeing the enterprise’s telecom sourcing or telecom contract management. Not only is it not cheap, it’s as complex as can possibly be—which is precisely how the telecom providers like it. The more complex the telecom agreement, the easier it is for them to add fees, hide costs, and generally jack up how much you pay to connect your company to your customers.

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