The Client
A European based global leader in providing advanced technology solutions for the energy sector, with operations spanning multiple countries and a workforce of thousands. The company specializes in designing, manufacturing, and servicing sophisticated systems and products for the oil and gas industry, including subsea production and processing systems, surface wellhead systems, high-pressure fluid control equipment, measurement solutions, and marine loading systems. The annual telecom expenditure in scope for this project was approximately $7.2 million, covering WAN needs specifically. 

Scenario
The organization engaged ProcureLogix to facilitate and manage an RFP process, as well as to negotiate their telecom contracts. They faced significant internal challenges, including contracts that had been out of term for at least four years, resulting in a lack of understanding of their contractual obligations and terms. This obscurity hindered effective lifecycle management. Additionally, constraints within the IT department necessitated external expertise to handle the labor-intensive tasks. The company’s goals were to reduce telecom costs without undergoing service migrations, utilize existing incumbent providers (primarily aggregators), gain a comprehensive understanding of their contractual terms, co-term services for improved lifecycle management, and establish a healthy sourcing environment.

Result
ProcureLogix assessed and navigated the organization’s existing contract terms, providing clarity and insight into their obligations. A strategically crafted RFP was released via Telibid™, targeting the company’s specific needs and constraints. This effort resulted in a significant 47% reduction in telecom costs, achieved without service migrations, thus minimizing disruption. Outdated contracts were replaced with new, comprehensive agreements featuring updated terms and conditions that superseded all prior conflicting orders. Services were co-termed for a three-year period, enhancing lifecycle management. The engagement not only delivered substantial cost savings but also established a healthy sourcing environment, which the organization has maintained since. The client continues to engage ProcureLogix on a consulting basis as needed and credits the initial engagement for their ongoing success in budgeting and cost reduction.