The evolution of telecommunications

In our current day and age, telecommunications are an essential part of any business or organization. As we continue to see an increase in employers offering flexible working arrangements, business deals going overseas and employees working in virtual teams, it is impossible to imagine a company without Internet, cellular and phone services.

As the need for communication services increases, so too does the number of providers within the industry. Choosing a service becomes a complex decision for companies and controlling costs in this field is quite complicated. When procuring telecom services most companies will engage a few suppliers to see what services and price points are being offered. Some will even issue a formal RFP. However, since the fear of business disruption is so rampant, most companies end up renegotiating with their existing supplier at a competitive price.

In most companies, IT departments perform telecom related pricing negotiations. This can prove to be a challenge considering these individuals are often busy fighting fires and managing the technical infrastructure of the business. It is hard to expect IT professionals to know what the best-in-class price points are for the myriad of services a business relies on to operate – especially when there are so many suppliers who offer similar services. IT departments are finding it increasingly difficult to effectively negotiate great deals when they don’t have the tools to do so and have so many other responsibilities on their plate.

The question, then, is how this tedious yet business-critical task can be leveraged to the professionals whose area of expertise is telecommunications. Companies don’t take a crack at preparing their own tax returns just because they have intimate knowledge of their balance sheet, so why should people who know telecom technologies make an attempt to negotiate pricing without some level of assistance? It makes perfect sense for organizations of any size to approach the experts in telecom auditing and cost optimization services, especially when there are several companies out there that actually specialize in delivering this service.

These companies will do the research to see which providers and services are appropriate for a client based on their business drivers. They will then negotiate best-in-class price points based on the client’s spending level and other factors. The information is typically presented in the form of a detailed report. Once a client chooses what suppliers and services they want, the consultant will assist with the implementation and may also act as their single point of contact for troubleshooting.

Very often these companies will not force a client to make an upfront investment by charging a fixed fee. They will just take a share of the savings based on what recommendations the client chooses. Companies like these contingency-based business models because they end up taking no risk – the consulting firm will either fund their own services or they will deliver a free validation that the organization is already optimized. This risk-free financial arrangement is one that few companies will turn down.

Ken Meyer, controller at West Chester Holdings, engaged an independent consulting firm to perform a review of his company’s telecom environment.

“We found tremendous value in our experience with a telecom consultant,” said Meyer. “Aside from the financial gains, we saved a lot of time and energy by not committing our resources to areas in which we lack expertise. In the end, we put no money at risk, injected a meaningful amount of money back into our bottom line and came away with a sense of security in knowing we were making the best decisions for the continued growth of our business.”

As a Schooley Mitchell consultant, I’m proud to offer independent consulting advice to clients, optimizing their business telecom services while saving them money. We reduce telecom costs by negotiating contracts with existing and potential vendors, and we do so without any ties to suppliers in the industry. This gives us the flexibility to find the best deal that will satisfy a customer’s needs. And we don’t only consult on telecom – we are also experts in merchant services, waste and small package shipping.

Telecom consulting is a fairly recent “phenomenon” but has already proven effective for businesses across North America. Dr. Art Schriberg, a long-time management consultant and Professor of Management at Xavier University, has dubbed the telecom consulting industry “a great idea – a classic case of implementing win-win solutions.”

As corporations and organizations outsource their work to save money and focus on their primary duties, telecommunications consulting will only prove to get them one step closer to increased profitability.