Situation
This Fortune 50 Health Services Company hired G2 to negotiate with their strategic telecom providers, which encompassed millions of dollars in monthly spend across a multitude of mobility and fixed line services and contracts. This company had been growing rapidly, both organically and through acquisition, and demanded contracts that were commensurate with their size. The providers had attempted to negotiate directly with this customer, prior to G2’s involvement, but presented offers that were tied to aggressive commitment structures and contained requirements for new revenue growth. Services included complex voice and data networks with dual-carriers and unique use cases for mobility devices that needed be highly customized.
Negotiation
G2 analysts worked with the customer’s IT personnel from several subsidiary organizations, in addition to corporate, to ensure a comprehensive inventory was created for all existing services. Stakeholders were engaged to validate the inventory and incorporate planned technology changes and project-specific requirements into the RFP. Negotiation documents were developed to align with the customer’s preference for a “Right of First Refusal” strategy with their key incumbent providers. G2 defined expectations for each carrier to include rate elements, terms & conditions and custom rate plans for mobility that best fit the customer’s usage profile. Expedited negotiations were conducted to meet the customer’s directed timeline. Through escalation with senior carrier decision-makers, G2 was able to conduct three full rounds of negotiations.
Result
Across all mobility and fixed line services, G2’s negotiations yielded over $75M in savings for this customer, nearly a 40% reduction, in the aggregate, and required no migration of services from their incumbent providers. All revenue growth requirements previously communicated by the carriers were eliminated and reasonable commitment structures were negotiated, along with other contract terms that provided enhanced contract flexibility.