What can TEMIA do for you?

Customer

The customer is a major financial institution with locations in multiple Western and Midwestern US states.

Challenges

After years of mergers, acquisitions, and aggressive growth, this financial institution found managing more than 700 physical locations, with approximately $20M of fixed and mobile yearly telephony spend challenging.  Telecom contracts from multiple vendors were inherited with each merger. With more than 60 vendors sending hundreds of paper invoices each month, the financial institution knew there was a need for a historical audit and a Telecom Managed solution.  In addition, they were facing a shortfall in meeting their Minimum Annual Revenue Commitment (MARC) for some services.

Shortly after engaging IBM Global Services – Consulting for a full scope of Managed TEM Services, the bank initiated a full TEM audit.  Contracts from all acquisitions were compared to the corresponding invoices and circuits not billing to contract were identified.  The IBM Team compared all billed circuits to the inventory at the remaining sites, identified circuits still being billed with closed sites, and validated if they were, or should be, disconnected.  Several large sites that had undergone downsizing had physical audits performed by the local telephone vendor to identify circuits that were terminated at the site but not in use. Invoices with long distance services were reviewed to determine if they should have been included in a prior project to consolidate Long Distance services under a single vendor contract.  Finally, the Minimum Annual Revenue Commitment (MARC) inputs were reviewed to determine services that were not being included in the MARC calculations.

Results

The successful IBM Telecom audit resulted in this financial institution receiving one time credits of over $1 million dollars USD and over $89,000 in monthly savings within the first year.  The overall IBM Telecom Expense Management solution resulted in a 130% return on investment.  Contracted services are now on the correct accounts, under the correct contract, and properly contributing to the various vendor MARCs. The financial institution is no longer in shortfall and will actually exceed their current year MARC. In addition, over 300 out of service circuits were removed from billing thus providing a clean inventory for the IBM Telecom Expense Managed solution.

Lessons Learned

Without the full IBM Telecom audit, this financial institution would still be paying for hundreds of lines that are no longer in service, have services billed incorrectly, and have to pay a Minimum Annual Revenue Commitment shortfall.  The IBM Audit Team worked closely with the client team to validate all locations and the active inventory at each.  Weekly Collaboration between all parties was the key to this successful engagement.  The IBM Telecom Expense Managed service provides the bank with a pro active and fiscally responsible solution that ensures inventory and billings remain accurate and complete.

IBM http://www-935.ibm.com/services/us/index.wss/offerfamily/gts/a1028807