Overview

This California County is often referred to as the American Riviera and is a top destination for locals and tourists from all over the world. Z Consulting helped the County optimize their monthly spending on Telco Circuits and other services.

Business Challenge

The County had a long-term relationship with its provider of Telco Circuits and was looking to cut costs and improve operational efficiency, without compromising the quality of service delivered to its internal customers and resident citizens.

The County wanted to ensure its existing contracts were performing to expectations and were competitive in today’s market places.

Process

With internal County resources already running at maximum speed, the County decided Z Consulting, with its deep experience in both contract negotiations and in Telco Circuit Analysis at public sector organizations, was the right partner to assist in the analysis.

Z Consulting worked collaboratively on a Telecom Circuit Audit.  This examination helped Z Consulting and the County identify specific areas of cost reductions.  

First, Z Consulting reviewed existing contracts to determine if vendor invoicing was according to the contract rates. Discrepancies were found and Z Consulting collaboratively worked with the provider to correct them.

Second, Z Consulting identified inventory for each County facility - T1s, ISDN PRIs, DIDs, POTS, as well as inbound and outbound usage.  A Technology Sizing Model was created to document these services. Then, these services were benchmarked with market rates to determine their competitiveness with the existing contracts.  During this process newer emerging technologies like SIP Trunking were also analyzed and compared.

A financial model was created to show various alternatives and their cost effectiveness.  Cost savings ranged from 20% to 60%.

Results

Today, the county has implemented the documented changes both in contracts and in cost effective circuits strategy without compromising the quality of service being delivered to its internal customers and citizens.  The county has benefited from newer circuit technology as well as gained features like caller ID when receiving external calls. More than a $1 Million savings over the life of the contract was music to the County’s management’s ears.

Amid a tight budget environment, many government agencies are looking for pragmatic ways to assess their cost structure, realize accelerated cost reduction without reducing service quality.  There exist excellent opportunities in the Telecom and IT areas to reduce costs through optimization, enhancement, and innovation.