A webinar we did not that long ago illustrates the main problem with telecom contract management and telecom contract negotiation. We asked how many attending firms went through the RFP and negotiation process when their telecom contracts were due for renewal. The answers were all over the board. However, only ONE said they did it “Every time”. I think we had one “Often”, but most said “Sometimes” or “Rarely”.
Now, why is that important? We want telecom managers to stop and really think about how much time and energy they put into their contract renewals. Not to create guilt, but to put them in the right mindset for the main point.
And what was that point? In over 23 years of telecom expense management, we have found that telecom contract negotiation, is the #1 way to cut telecom costs.
It comes down to missed opportunity. If you let your telecom contract lapse and renew automatically, you can bet your life savings that the telecom vendor is not going to give you a great deal.
It also eliminates any chance you have to optimize your environment. What do you have now? What are your future needs? Is there any new technology out there you should know about, any consolidation you can do to save money, like devices/lines/circuits/plans that can be bundled, pooled, reduced or eliminated? If you don’t know the answer, then it might be time to talk to your vendor, and maybe several others via a telecom RFP, about what they can do for you. Because if you don’t ask, you won’t receive.