The Client

A prominent regional financial institution in the Northeastern United States, offering a wide array of banking services to individuals and businesses. With a robust presence across multiple states, the institution operates numerous branches and depends extensively on its telecommunications infrastructure to ensure seamless operations, exceptional customer service, and stringent data security. Its annual telecom expenditure totaled approximately $2.8 million, covering voice, data, and network services essential to its daily activities.

Scenario

Partnered with ProcureLogix to address a pivotal moment in its telecommunications strategy. Initially, the bank aimed to renegotiate a renewal with its incumbent provider, AT&T, for its primary network and additional telecom services. At the time, the institution relied on outdated TDM technology and faced significant price increases as it contemplated transitioning to modern internet or broadband-based solutions, such as SD-WAN.

The bank’s primary objective was to stay with the incumbent provider while securing favorable terms to curb price hikes and convert its primary circuits to SD-WAN/Internet based service. A secondary goal was to bolster redundancy at each branch by upgrading network speeds for secondary circuits, managed by a separate aggregator. However, having been out of contract for over a year on its primary network, the bank faced negotiation challenges. ProcureLogix proposed an aggressive strategy: rapidly deploying an RFP via Telibid™ to increase leverage and compel the incumbent to present a competitive offer. This approach proved critical in tackling the bank’s challenges and meeting its objectives.

Result

ProcureLogix executed the RFP process via Telibid™ with remarkable efficiency, completing it within 6 months. The outcome was exceptional, achieving a 70% reduction in the bank’s annual telecommunications costs, one of the most impressive savings in ProcureLogix’s history. Additionally, the bank secured a 7% cost reduction on its secondary network, even after doubling bandwidth to ensure robust and reliable redundancy.

The RFP not only delivered substantial financial gains but also enhanced service quality and modernized the bank’s telecommunications infrastructure. By transitioning from legacy TDM services to advanced solutions, the institution avoided looming price increases and positioned itself for long-term operational efficiency. ProcureLogix collaborated with the bank’s solutions provider to partner with the winning competitor, ensuring a smooth migration that minimized disruptions to branch operations and moved away from their primary network incumbent. This transformation highlighted the power of a competitive sourcing strategy, enabling the bank to meet its goals while embedding a culture of strategic procurement and cost management.