Publication

Obtaining the best telecom contract for your organization

Organizations that source telecom services must develop and execute a sourcing strategy that meets business needs and captures best market pricing and best practice contractual terms. As telecommunications technology continues to rapidly develop and organizations’ business needs change, organizations must implement the associated new voice and data services to keep up with end-user demand for improved service levels to obtain cost saving opportunities available in the marketplace. Disruptive changes have become commonplace in the telecom market today, as seen in complex and changing market price options, and the widespread merger and acquisition activity. In just the last few years, WorldCom declared bankruptcy, Sprint merged with Nextel, Verizon acquired MCI, SBC acquired AT&T and the new AT&T is currently finalizing its merger with BellSouth. As the telecom landscape changed, many enterprises either expanded or contracted through organic growth, spin-offs, mergers and acquisitions and expansions into new geographies.

PA Consulting Group assists organizations with telecom service contract(s) analysis, sourcing initiatives, technology review, vendor recommendations and vendor negotiations planning for their existing or new contracts. PA assesses and analyzes existing telecom contracts for the voice and data pricing structure, key service levels and key terms and conditions, ie benchmark clause. The contracts are assessed for areas of improvement based on best practice and PA recommendations. Market prices and best practice language are compared to current contracts to prepare organization for negotiations for contract renewal or new services.