The Client

A Fortune 500 Company global provider of financial technology solutions, specializing in software and services for retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing. With an annual telecom expenditure of approximately $250 million, it supports its extensive operations and connectivity needs. The organization employs around 60,000 people worldwide and serves over 20,000 clients, including financial institutions, merchants, and governments across more than 130 countries. Its scale and technological focus make it a significant player in the FinTech industry, processing trillions in transactions annually.

Scenario

Engaged ProcureLogix to facilitate, manage, strategize, and lead contract negotiations following a complex RFP process. The RFP encompassed all their telecom services—including voice, wireless, WAN, and video conferencing—spanning nearly every global region (APAC, EMEA, North America, South America, and LATAM) and involved multiple stakeholders. The organization faced significant internal challenges that prompted the partnership with ProcureLogix, including low inventory visibility hindering market benchmarking, unsound contract records obscuring lifecycle visibility, potential reciprocity conflicts and senior-level IT department ties with carriers complicating impartiality.

ProcureLogix implemented a comprehensive, strategic approach to address these challenges, delivering enhanced visibility, cost savings, and a sustainable telecom sourcing framework.

The organization laid out their objectives as follows:

• Gain Visibility into Inventory: Establish a clear, centralized view of telecom assets to enable accurate market benchmarking.
• Gain Visibility into Contracts: Create a robust system to track and manage contract lifecycles.
• Assess Contracts: Evaluate existing agreements to identify inefficiencies, risks, and opportunities for improvement.
• Strategize Savings and Improvements: Develop scenarios for cost reduction and contract optimization.
• Collect Technical Requirements: Gather and align technical specifications from all stakeholders, both internationally and domestically.
• Release a Comprehensive RFP: Launch an RFP covering voice, wireless, WAN, and video conferencing services across all regions.
• Reduce Costs and Consolidate Vendors: Streamline vendor relationships to lower expenses and enhance service quality.
• Migrate to Reduce Incumbent Footprint: Transition services to minimize reliance on bad-acting incumbent carriers.
• Solidify a Competitive Sourcing Culture: Foster an internal culture to maintain a competent, ongoing telecom sourcing lifecycle.

Result

Through a comprehensive six-month process, ProcureLogix meticulously captured and assessed its entire telecom spend, gaining unprecedented visibility into inventory and contracts while establishing a baseline for an RFP. This effort, involving stakeholders up to the Chief Operating Officer, also initiated our suggested sourcing strategies and cultural implementation, with technical requirements gathered from all domestic and international parties. By the seventh month, an RFP was launched via Telibid™, and within an additional six months the RFP was closed, contract redlines/negotiations were finalized, and significant savings were set. The results were significant: the global telecom vendor pool shrank from 57 to under 30, yielding annual cost savings of $102 million (41%), while non-competitive incumbent carrier footprints were diminished and, in some cases, outright replaced. This success spurred a repeat engagement focused on another segment of the telecom spend, deliberately avoiding network migrations or new financial and term commitments, which delivered 28% in cost reductions while preserving relationships with selected incumbents. The transformation not only achieved remarkable financial and operational efficiencies but also solidified a competitive sourcing culture within the organization.