Telecoms is a complex area of spend requiring active management. Rate plans and contracts are complex and you need a balanced decision making approach. Business requirements change rapidly which means plans signed a year ago are less likely to meet current needs.
Telecommunications represents a significant cost for many businesses. Much of the marketplace still operates under a legacy model of buying and consuming telecommunications. Traditional 'set and forget' 3 year contracts are inflexible and costly. While Telco and IT prices fall, contracts remain fixed creating an ever-widening value gap.
Businesses that consider a new approach to buying telecommunications are likely to reap significant rewards.
Fixed term contracts
On average technology and telecommunications prices fall 6% per year. Locking in prices over 3 years fails to account for price falls or technology advances over the contract term. This is a legacy pricing approach which has survived from analogue to the digital world.
Lack of transparency
A lack of transparency in invoices makes it confusing to identify overcharging. It also makes it easier for suppliers to hike up prices. Further, reporting often makes it difficult to reconcile contract terms back to what you are paying.
Sign on bonus
Sign on bonuses (the so called "tech fund") are an up front payment from the supplier for awarding the contract. It is a sales tactic to hand you 'free money' while putting unfavourable terms in a contract. The supplier will add this into their margin so don't think you are getting something for free.
Single Supplier Contracts
The idea of a single supplier is out-dated. Having a single supplier and technology in the event of a failure does make sense. Different suppliers have differing areas of strength - so leverage them. Determining where each fits for you requires expert advice.
Buying your telecommunications smarter can save you money and time. Buying direct from a single retailer is not likely to deliver the best outcome. A lack of transparency and legacy behaviour pervades the suppliers in this space.
Choose a non-direct supplier who can help you with:
Supply Clusters has partnered with Commschoice to cut through the spin in telecommunications.
Supply Clusters members receive the following exclusive benefits:
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Telecommunication is a large and complex expense but there are opportunities to simplify and save.
You should choose a provider that offers: