Firms missing out on big telecoms savings

Firms could save millions on their telecoms portfolio

Large multinationals could be missing out on up to 15 per cent total cost of ownership savings on their global telecommunications portfolio, according to new figures released by consultancy Hudson & Yorke today.

With the annual telecoms TCO of large enterprises estimated at upwards of £50m, this could amount to millions of pounds in savings, the firm said.

Hudson & Yorke argued that firms often allow costs to escalate during the contract negotiation process because they do not allow enough time for comprehensive due diligence or formulating a clear telecoms strategy.

"It is essential to have a comprehensive understanding of the contracts, assets, people and costs currently in place, as that will drive the strategy and underpin any contract negotiations," said Hudson & Yorke chief executive Harry McDermott.

"Ultimately this will build confidence in the business case, minimise the risk premium sought by the vendors and maximise the potential for a successful outcome to the negotiation process."

The consultancy advised that firms could save yet more money by adopting a global strategic approach to sourcing within their telecoms portfolio, for example by aggregating services onto a single international managed deal and consolidating the supply chain.