Our client has realised positive growth year on year and the pipeline also remained strong. However, with the increase in demand for their services, and an initiative to improve customer turn up time there was also a need to ensure OPEX costs were monitored and reduced.

Specifically, the mandate was to save $1 million in Off-net provider costs, commencing 1st Feb 2018.

We were engaged to provide the required expertise including provision of project management and design and implementation of a cost savings process.

The Challenge

Although the client had positive growth year after year, there was an urgent need to understand their OPEX costs, specifically in relation to off net providers (Globally). With no ongoing BAU process to manage third party costs and resource constraints within the business there was a requirement to design a process that would meet the savings requirements while ensuring internal resource constraints were overcome without impacting Business as Usual Functions.

Our Process

Our initial task was to undertake a discovery process to understand and collate all procurement led activities and data relating to off-net carriers. This included all layers of connectivity from Colocation to Sub Sea connectivity.

Workshops were led with key technical resources to review on-net capacity against the off-net leased capacity.

A strategy defining our approach to identify cost savings targets was agreed including resource requirements

From March 2018, we commenced with cost savings implementations that consisted of:

• overdue cancellations,

• migration of services from offnet to on-net,

• removal of unused colocation racks,

• reconciliations of over charges,

• renegotiations of existing agreements,

• low cost high volume physical cross-connect cancellations.

Outcome

• Cost Savings Target of $1 million met.

• The client was left with an optimal cost savings process that could be repeated yearly.

• The $1 million savings, also allowed our client to invest in other key areas of the business.