Fortune 200 Financial Services
To support this large financial services company’s cloud-first transformation and strategy, TC2 was engaged to lead the pricing and contract negotiations for new, 9-figure, multi-year contracts with two cloud service providers.
Critical to the successful negotiation of market leading discounts, credits and other deal benefits, was the detailed financial analysis that TC2 developed of the competing cloud proposals against the clients forecast cloud consumption. TC2 also negotiated the associated commercial terms (such as commitments, credit conditions, SLAs and governance structure). Once the pricing and commercial terms were agreed with each cloud service provider, TC2 led the negotiation of the contractual documents to accurately reflect the deal that had been agreed.
In parallel with the cloud service provider negotiations, TC2 also led the complementary negotiations with a large systems integrator for the professional services required to migrate the more than 1,000 applications to the cloud. TC2 developed and negotiated a custom, success-based pricing model, with fees aligned to the successful modernization and transition of individual applications to the cloud (rather than a traditional time and materials bases fees model). TC2 also led the development and negotiation of a comprehensive statement of work for the professional services, making sure that the systems integrators scope of work, and the division of responsibilities between the client and the systems integrator, were precisely and clearly documented.
Global Mining Services Company
This global conglomerate engaged TC2 to develop a global network strategy that would move the client from its existing reactive approach to responding to new business requirements and end user needs, to proactively delivering the network infrastructure and services that will support the company’s short and medium term needs and business objectives. The scope of the network strategy included all wide area network services and suppliers, different standard site types, SD-WAN, edge equipment including WAN optimization devices and routers, network support for applications and management of current services and infrastructure.
TC2 conducted various workshops and interviews with key stakeholders, IT managers and subject matter experts from across the globe to understand and document the client’s current environment and pain points, future needs from the IT and end-user’s perspective and support for current and future applications that will be deployed in the near-future. TC2 assimilated, documented and assessed all of this input and developed recommendations (including detailed rationale and analysis) for each key area/technology that would deliver the documented needs and objectives. TC2 also provided a high-level roadmap with specific near-term and medium-term workstreams, sourcing strategies and milestones for the implementation of the strategy recommendations. The resulting findings, assessments, recommendations and roadmap were documented in a comprehensive Network Strategy Report, providing the client with a clear and documented network strategy and transformation plan to share and rationalize the strategy internally and gain support and approval for the recommendations and next steps.
SD-WAN and Internet Transport
This client needed assistance to “prove-in” a business case for migration to an SD-WAN based network architecture. TC2 was hired to conduct an analysis of, and benchmark for, the anticipated future state network design. The network endpoints were 30% US domestic and 70% international, and the client was moving to a heavier dependence upon public IP services (dedicated internet and broadband), while retaining a residual MPLS or private IP network – typical of most SD-WAN implementations.
As well as facilitating the development of the future state demand set based on the client’s requirements, TC2 created a financial model which provided the following outputs:
- A cost baseline of the existing network
- Projected network costs of the future design under existing supplier contracts
- Projected network costs of the future design based on global market rates (benchmark analysis)
- Projected SD-WAN solution and managed service overlay supplier costs of the future design based on the new topology and bandwidth requirements
The results of the project enabled the client to finalize and approve plans for their SD-WAN migration. TC2’s work continued to assist the client with a global network procurement to obtain market leading rates for the SD-WAN network elements.
TC2 has assisted this client in a variety of strategic network and telecom projects since 2003. These projects have consistently delivered many millions in cost savings, as well as improved service levels and market leading contract terms. The projects have been consistently delivered for fees that are a small fraction of the savings delivered.
Recently, TC2 supported the client’s procurement of its global managed network services requirements, including maintenance and management of WAN, LAN, WLAN, security, voice and contact center infrastructure, services and software. TC2 facilitated the assessment of existing service pain points and the development of the “to-be” outsourced services scope and structure to pro-actively address and eliminate such pain points in the go-forward service provision model.
TC2 provided a full turnkey RFP process including developing the RFP documents, managing bidders, evaluating proposed solutions, negotiating pricing, commercial deal structures and service levels, and then worked hand in hand with LB3 to develop and negotiate contract documents (including custom statements of work, pricing constructs and service level agreements).
The RFP ultimately delivered savings of $40m over the term of the new contracts, with the majority of the in-scope services being migrated to new suppliers with a strong focus on automation and continual improvement.
Global Technology and Manufacturing Company
Following on from a successful TC2 led project to source a next generation managed SD-WAN solution and the associated Internet circuits to implement an Internet First network strategy, TC2 was engaged by this client to support the next phase of its network transformation program that included managed LAN and security services and transformation of the client’s legacy voice and contact center infrastructure.
TC2 developed and executed a strategy for a multi-faceted sourcing program encompassing four integrated RFPs for the different transformation work streams. TC2 provided full turnkey RFP processes including developing the RFP documents, managing bidders, evaluating proposed solutions, negotiating pricing, commercial deal structures and service levels, and developing and negotiating contract documents (including custom statements of work, pricing constructs and service level agreements).
The outcome from the sourcing program included:
- 50% run-rate savings for the managed LAN and security services, via a new, automation led, global supplier and services.
- Transformation of the client’s legacy voice infrastructure to fully managed cloud-based Microsoft Teams enterprise voice and integrated SBC-as-a-service and SIP Trunking services, while achieving greater than $2m in annual savings.
- Migration of contact center users to a new fully managed cloud Contact Center-as-a-Service (CCaaS) platform, which significantly enhanced the client’s CCaaS capabilities.
Requests for Proposal
Global Payments Processing Company
Over the last fifteen years TC2 has performed three cycles of competitive procurements for network services for this client delivering savings in excess of 35% with each engagement. Via this regular program of competitive sourcing, coupled with the development of a long-term procurement strategy to align the contract terms of all its major global suppliers, we have worked with the client’s procurement organization to establish a consistent commercial deal construct across its six largest global suppliers.
The client has also regularly worked with TC2 to engage its global suppliers on annual rate reviews which have driven continuous improvement and year on year savings across its six major global network suppliers.
Contract Compliance and Optimization
Fortune 100 Manufacturing Company
TC2 was engaged to perform a contract compliance and optimization review of the client’s global telecom transport spend, initially focusing on just a few key suppliers and later expanded to include additional global suppliers. The audit results have delivered over $5M in annual net savings to our client, none of which were identified by the client’s Telecom Expense Management provider. The audit results fell into three categories:
- Outdated/legacy telecom services that were no longer being used, but were never disconnected. This was the largest category of savings and included services that were subject to standard tariff rates where unit pricing had risen dramatically
- Services billing at closed sites that were never disconnected and;
- Overbilling errors – assessed rates that were higher than contracted rates.
As part of this project, TC2 also identified incremental savings projects which ultimately led to re-negotiation efforts with the TEM supplier to improve service levels and close the gaps that were discovered during the audit. TC2 was also able to assist with providing accurate savings projections and the implementation of a North American aggregator platform using the detailed inventory analysis developed during the audit activity.
US Large Retail Services Company
This U.S.-based general merchandise retailer with stores in all 50 U.S. states and the District of Columbia engaged TC2 to develop a SD-WAN and WAN transport assessment, financial business case and strategy that would move the client from its legacy network environment to a transformed future-state environment supporting new applications, enhanced inventory control, increased store network uptime and other short- and medium-term needs and business objectives. The scope of the SD-WAN and WAN transport strategy included all wide area network services and suppliers, different standard site types, SD-WAN, edge equipment including WAN routers, network support for applications and management of current services and infrastructure.
TC2 conducted various workshops and interviews with key stakeholders, IT managers and subject matter experts to understand and document the client’s current environment and pain points, future needs from the IT and end-user’s perspective and support for current and future applications that will be deployed in the near future. TC2 assimilated, documented and assessed all of this input and developed recommendations (including detailed rationale and analysis) for each key area/technology that would deliver the documented needs and objectives. TC2 also prepared a financial business case that compared the company’s current costs to its future costs. The projected future costs were based on its desired bandwidth, redundancy and diversity needs for the WAN transport and the SD-WAN equipment and licensing needs. TC2 also provided supplier recommendations and sourcing strategies for the implementation of the strategy recommendations. The resulting findings, assessments and recommendations were documented in a comprehensive SD-WAN and Transport Strategy Report, providing the client with a clear and documented network strategy and transformation plan to share and rationalize the strategy internally and gain support and approval for the recommendations and next steps.
Mergers and Deal Integration
Fortune 500 Supply Chain Solutions Company
While finalizing a competitive procurement of WAN transport services, our client announced the closing of an acquisition that would effectively double the size of their network and services spend. TC2 quickly and seamlessly pivoted to support the integrations of both the network and the deal, and by leveraging the gains of the competitive procurement we delivered a market leading result. The network and deal integration enabled a network topology that is transforming to “internet first” as part of a broader SD-WAN migration strategy. Financially, the deal integration comfortably exceeded acquisition synergy targets and retained maximum commercial flexibility. The deal construct will accommodate anticipated network optimization and transformational technology aspirations.
In parallel, TC2 integrated the merged entities’ mobility agreements into a new MSA resulting in an optimized user estate using new, cost effective rate plans, and the provision of new devices for many users. The new deal delivered larger than expected savings, contains several best-in-class provisions, and provides contractual flexibility that will keep the deal competitive over the contract term.
IT Workplace Services
TC2 was engaged by this large financial services company to structure and execute a sourcing program to radically improve end user IT workplace services, including service desk support, on-site/desk-side IT support, PC device management, PC refresh, managed print and a range of related functions, plus sourcing and selecting the preferred PC device manufacturer. TC2 developed parallel RFPs to address (i) the preferred PC device manufacturer selection, plus (ii) outsourcing the end user IT workspace services. In addition to being responsible for drafting the RFPs, TC2 was also responsible for managing bidders through the RFP processes, evaluating proposed solutions and working with the bidders to refine the solutions, and negotiating pricing, commercial deal structures and service levels. Once the client had selected its preferred vendors TC2 then worked hand in hand with our legal partner LB3 to develop and negotiate contract documents (including custom statements of work, pricing constructs and service level agreements).
Key outcomes from the RFPs and negotiations included:
- Improved pricing and discounts with the clients preferred PC manufacturer.
- Innovative “as-a-service” financial construct for PC lifecycle refresh.
- Cutting edge integrated workspace services outsourcing contract across all in-scope services to govern the transition of the services to a new outsourcing partner.
- A transition to fully outsourced workspace services with a renewed focus on end user experience, underwritten by market leading service levels and robust commitments to ongoing automation and continual improvement.
- Significant run-rate savings across the term of the new contract.
Fortune 100 Insurance Company
TC2 has been providing Lifecycle Services support to this client since 2012. The multi-million dollar benefits realized by the client from TC2’s Lifecycle Services average more than 10 times the Lifecycle Services fees. In addition to the financial benefits, the Lifecycle Services provide the client with continuous access to market analysis, strategy guidance, and technology expertise.
The Lifecycle Services have spanned a broad range of initiatives and projects in the US and globally; e.g.:
- Negotiating major domestic and global contracts extensions
- Running in-country and regional procurements in Asia and Europe
- Ongoing benchmarking of a full spectrum of global telecom and related IT services to support the client’s day-to-day negotiations with vendors
- General support for vendor negotiations and procurement activities
- On-going assistance with various contracting and billing issues.
The TC2 team also proactively identifies vendor billing issues and opportunities to optimize the client’s services. It then works directly with the vendors to address the issues and optimization items on an ongoing basis.
The client is extremely happy with the services and value delivered by TC2’s Lifecycle Services. As a result, TC2’s Lifecycle Services arrangement has been renewed every year since its inception.
U.S. Wireless Services RFP
TC2 was engaged by this client to run a full turn-key RFP process encompassing over 20,000 lines of service.
TC2 took the lead on developing the RFP document, compiled and developed the baseline of existing services and costs, evaluated the suppliers’ RFP responses including complex analysis of various new rate plan propositions, developed comprehensive negotiation feedback/coaching letters for each supplier, led the ensuing commercial and pricing negotiations and supported and coordinated the contract negotiations with the winning suppliers.
The project resulted in over $2 million in annual savings, various new contractual incentives for adding new subscribers and greatly improved wireless equipment pricing.
Telecom Expense Management
TC2 delivered a full turnkey competitive RFP process for global TEM services for our client, with the primary goal of replacing the incumbent TEM provider that was underperforming.
Prior to RFP issuance, TC2 coordinated a planning and strategy session with the client to document the remaining contractual obligations and timeline remaining with the incumbent provider, plus to assess pain points and areas operating satisfactorily. This planning phase was crucial to help the client team to establish its future state TEM requirements and processes, and to develop RFP objectives and content accordingly.
TC2 facilitated a pre-RFP vendor briefing session with the 9 top rated TEM providers in order to assess global capabilities and coverage and to ultimately narrow the field for the RFP to only viable candidates for our client. The RFP was issued to just 4 candidates that demonstrated that they could most closely meet the client’s global requirements.
TC2 was an integral part of the project team for the entire duration of the project, from initially setting the sourcing strategy, to drafting modular RFP documents, building the Total Cost of Ownership model, evaluating RFP responses, leading supplier negotiations, and contract development. The final outcome of the RFP was a robust contract with a new TEM supplier that included a broader scope of services at a lower cost than the incumbent supplier. Following contract execution TC2’s services were retained to lead the implementation of the new TEM supplier and services.
Multi-national Manufacturing Company
Our client had a largely legacy TDM voice transport environment. Locally provided voice circuits were pervasive in most regions across numerous different suppliers, and often at high rates, with only limited deployment of SIP Trunking
TC2 provided a market assessment of the global opportunity and guidance on the strategy to consider across the regions. This was taken forward with an RFP based procurement for full-PSTN replacement centralized SIP trunking. TC2’s process and expertise was used to develop and run the RFP, perform financial analysis and lead supplier coaching. Considerable savings on the current voice infrastructure were established through TC2 facilitated deep-dive sessions and targeted direction and coaching to the suppliers. This feedback also secured robust commitments on service and support for both pilots and the main implementation. In aggregate, the initiative produced savings against current costs approaching 50%.
Dispute Resolution and Workouts
Global Industry Services Company
This customer had recently entered into a new, long term outsourcing agreement with a global service provider. However, the customer was extremely dissatisfied with the services being delivered by the service provider and the costs being incurred. Furthermore, the customer-supplier relationship had been severely damaged.
TC2 was engaged by the customer to examine the service issues, review the pricing and costs, and develop and execute a plan to drive improvements.
Despite the contract only providing weak, if any, levers for the customer to use and having many years left before it expired, TC2 was able to work with both parties to achieve significant improvements:
- Re-negotiated pricing to drive multiple six figure annual reductions and improved pricing transparency.
- Leveraged TC2’s independent relationship with the service provider’s executive management to bring in new account team leads, helping to overcome the broken customer-supplier relationship.
- Based on analysis of the contract and customer pain points, and the development and formal communication of a list of critical required improvements, various process and service improvements were realized.
Requests for Proposal
TC2 led this critical global project with the core objective of driving transformational change (operational and technology transformation) via the catalyst of a competitive procurement for the majority of its network transport and managed network services globally.
TC2 was an integral part of the project team for the entire duration of the project, from initially setting the sourcing strategy, to drafting modular RFP documents, building a complex global Total Cost of Ownership model, evaluating RFP responses, leading supplier negotiations, working on contract documents and supporting the resulting migration of services to new suppliers.
The project delivered multi-million dollar cost savings, vendor consolidation, improved network performance, enhanced network technologies, operational transformation through a new outsource partner coupled with a new internal organizational structure, and a robust platform for the client to move to its next state of technology transformation.
Contract Compliance and Optimization
Global Information Technology Company
TC2 identified over $2M in credits due to billing errors and billing optimizations which in turn lowered the telecom expense run rate by over $3M annually. Savings were identified over the course of an audit and optimization project that focused on validating client inventory and billing rates. This client had an in-house Telecom Expense Management (TEM) provider that had not identified these findings.
Global Manufacturing Company
Building on TC2’s benchmark and review of the client’s global contract with its incumbent Unified Communications (UC) managed services provider, TC2 was engaged to provide a comprehensive UC Strategy and Design to determine and deliver the client’s UC needs over the coming years. TC2 performed the UC Strategy in three phases:
In Phase 1, working with the client, TC2 gathered and assessed information gained from stakeholder interviews and existing client documentation (e.g. strategy and planning documents, architecture, security and operational documentation) to establish and document current and future UC requirements, and current areas of concern and constraints that the future UC services would need to address.
In Phase 2, TC2 conducted an on-site UC Strategy Workshop with key client stakeholders. The workshop built on the information gathered and assessed in Phase 1 and provided for focused interaction between TC2 and the client UC project stakeholders. Outputs from the workshop included: an assessment of the existing network infrastructure’s readiness to support a new UC solution; contact center requirements; commercial requirements for the UC solution; UC engineering and design considerations for premise-based, cloud or hybrid delivery models; end user requirements and associated personas; and a sourcing approach for the required UC services.
In Phase 3, TC2 assimilated and documented the information and outputs from Phases 1 and 2 in a comprehensive UC Strategy and Design Report. The Report provided the rationale and design for the target UC solution based on the findings, recommendations and requirements established from the strategy review. TC2 also developed a high-level roadmap providing the recommended timing and major tasks and activities for the procurement and deployment of the UC solution, providing the client with a clear and documented plan that enabled swift commencement of the procurement phase.
SD-WAN and Internet Transport
Global Technology and Manufacturing Company
TC2 supported the client in developing its Internet first strategy, providing a route to transform its current network architecture to a fully managed SD-WAN based solution. The strategy objectives were to:
- Position the client to take advantage of the performance, configuration flexibility, simpler management and improved analytics available with an SD-WAN solution;
- Ensure robust managed service support arrangements alongside the SD-WAN technical solution; and
- Secure significant managed service and networking cost reductions through migration away from MPLS to Internet based transport and simplification of on-site CPE.
The two key elements of the strategy were an RFI+ for a managed SD-WAN solution and an RFP to secure a portfolio of Internet transport providers to support the client’s global footprint. TC2 drove the initiative using the latest market knowledge, its proven processes and repository of RFX requirements, content and templates. The dual procurements were tuned to the client’s specific needs with forecast savings of >20%, while increasing bandwidth and covering the investment cost of the SD-WAN solution. The client expects to further increase the transport savings over time as the future bandwidth (which was intentionally over-provisioned initially) is more accurately tuned to business needs.
Pan-European Mobiles Services Project
For this large international company, TC2 supported a pan-European mobile services procurement. Initially, a strategy for sourcing services across more than 25 countries was developed. A balance was struck between those where local in-country sourcing was more appropriate and those countries that should be consolidated into a pan-European RFP. Thirteen countries were taken to RFP. TC2 helped navigate through supplier resistance to a competitive process, which paid off during the RFP and, ultimately, helped facilitate supplier transition in some countries. TC2 produced the RFP, undertook all financial analysis, developed the bidder coaching messages and led the negotiation with bidders throughout the process. Through TC2’s structured RFP approach, detailed analysis and market expertise an annual run-rate of ~€10M was reduced to a little over €5M with improved support arrangements and increased mobile services allowances across the countries. In some cases, there were also significant coverage enhancements bundled within the overall pricing. With some selective supplier transitions, which reduced cost and enhanced flexibility, the project also positioned the client for successful, competitive re-procurements in the future.
Requests for Proposal
Global Talent, Staffing and Recruiting Services
TC2 was engaged to execute a global network transformation/technology cost reduction initiative covering more than 800 enterprise locations throughout North America, Europe and Asia. The client was seeking an optimal hybrid networking solution (private, broadband/Internet, fixed wireless transport and VoIP utilizing Cisco iWAN-based routing) to achieve significant cost reductions, increased bandwidth/scalability, higher network performance and enhanced service delivery.
A fully competitive sourcing event was leveraged to drive the necessary technology change and cost reductions. TC2 led the effort, working closely with the client project team. Key aspects of the sourcing program included developing comprehensive RFP documents and related financial models, engineering the future-state network design parameters including voice and data convergence, evaluating supplier solution proposals/greenfield service alternatives, leading negotiations and working with draft agreements for finalist suppliers selected to provide the solution.
The project delivered annual savings exceeding 50% vs. the legacy solution cost. Additional benefits included significantly increased bandwidth, enhanced network technologies, robust and enforceable SLAs, flexible commercial arrangements and operational transformation through two new WAN partners.
Global Diversified Technology and Multi-Industrial Solutions Provider
TC2 was engaged to perform a comprehensive strategic review of this client’s $110m+ global annual spend on network transport and managed services, with the objective of identifying cost reduction and service improvement opportunities from alternative transformational technologies and through improved service contracts and pricing.
The strategies that TC2 developed included recommendations designed to transform the existing managed network service environment from a costly, headcount intensive arrangement to an agile, scalable and outcomes-oriented model. Further, TC2 identified substantial opportunity to reduce the cost of the current transport services, and developed sourcing strategies to realize such savings in parallel with delivering transformational cloud connectivity objectives, Internet first network solutions utilizing TC2’s “portfolio” supplier approach and a transformation of the legacy TDM voice environment to SIP in North America and Europe.
The report that TC2 delivered from this work provided the scope, strategy and roadmap for a global modular RFP program spanning the $110m of annual spend, and the expected benefits that the RFP program would deliver. The client subsequently engaged TC2 to lead and execute the RFP program.
SD-WAN and Internet Transport
Food, Agricultural and Industrial Products Conglomerate
The client was seeking to understand how best to transform its network and move away from its MPLS and VPLS core infrastructure by taking advantage of SD-WAN technologies. TC2 supported the client in collaboratively developing the SD-WAN sourcing strategy and requirements set against the client’s specific needs, including the “future state” network transport demand set, and then executing on a supplier selection process for a client managed SD-WAN solution. Using TC2’s competitive RFI+ approach and financial templates, the client was able to review and down-select the best-fit candidate for a pilot program while identifying and successfully negotiating improvements in terms of cost and solution scope. Critically, this included comparative solution and financial analysis that exposed risks and relative weaknesses in the supplier offers, forcing some dramatic re-structuring of alternative offers with significant benefits for the client. The TC2 financial analysis and negotiation guidance and expertise was able to improve the supplier offers by several million dollars, while securing enhanced capabilities and increased commercial and contractual flexibility. Ultimately, following successful pilot, the down-selected provider for the pilot was endorsed as the preferred SD-WAN solution provider. Additionally, the selection and implementation of the SD-WAN solution positioned the client to take advantage of significant transport cost savings through migration to the future state transport.
Requests for Proposal
Global Consumer Products Company
TC2 supported this global conglomerate with the on-going management of its global network outsourcing contract that has an annual spend in excess of $180 million. TC2 was initially engaged to provide ongoing benchmarking and negotiation services in support of the client’s ad hoc negotiations for new services and service upgrades. Over the first few months of TC2’s engagement, the return of investment on TC2’s services rapidly exceeded ten times TC2’s fees.
Separately, TC2 undertook a benchmarking and negotiation of a fully immersive video services contract (with a difference vendor) securing a 15% annualized price reduction.
TC2 was subsequently asked to also provide more strategic input to the client’s relationship with its outsourcing provider, in particular as the contract approached its expiry, and to develop a strategy to improve the relationship and address a variety of key pain points. TC2’s strategy focused on increasing the general level of competitive tension applied to the outsourcing vendor by instigating a number of competitive sourcing initiatives in parallel with ongoing discussions to extend the outsourcing agreement. The strategy was successfully implemented resulting in far improved negotiation leverage over the outsourcing vendor and ultimately an extension of the outsourcing contract with 8- figure annual savings.
SD-WAN and Internet Transport
International Software Company
TC2 undertook a global Internet transport procurement for this software developer. The client needed to reduce costs, but also increase the available bandwidth at a number of key locations where high-bandwidth circuits were needed to support software development and collaboration. TC2 developed the RFP documentation, led the review of responses and undertook the required scenario based financial analysis to identify the best mix of suppliers to balance management and service commitments with total cost. Through targeted supplier coaching developed by TC2, 50% increases in savings compared to the initial offers were negotiated. In areas such as provisioning and proactive-management of faults, TC2 was also able to improve on the existing service support commitments. Finally, through its support of the contract negotiations, TC2 successfully closed out service, financial and key deal elements of the contracts for the selected suppliers, making final improvements and, critically, capturing and rectifying important areas where suppliers attempted to move away from, or did not properly reflect, earlier commitments from the RFP process.
Crucial to the success of the project was TC2’s deployment of its Internet transport supplier “portfolio” approach, moving the outcome from a projected cost increase from a single supplier strategy to a 21% aggregate saving using the portfolio approach. While delivering these savings, bandwidth at a third of sites was increased by a factor of 10, and ~10 new circuits were added to the inventory.