■The total savings, refunds, and credits represented a 35% reduction in expenses as a result of our efforts. ■The client now has an accurate inventory of all telecom expenses and processes to metter manage the billing.
Leading Software Provider Realizes Millions from Audit

Background

  • A leading provider of financial software and Web-based services for consumers, small businesses and accounting professionals has grown exponentially over the last few years as a result of increased sales of existing products and through mergers and acquisitions.
  • While the client was reviewing some of their bills on an on-going basis, most of the telecom services bills were being processed for payment by their Accounts Payables department without approval or rate verification processes. This made it difficult to forecast a telecom budget for many if the client’s IT organizations and left them vulnerable to billing over-charges and paying for services which are not at contract rates or no longer needed.
  • In addition, the client had a lack of knowledge about eh inventory and what services were being utilized in each of their locations.
  • The costs of the network billing were increasing exponentially.

Challenge

  • Telecom invoicing is difficult to understand.
  • Many different billing platforms and offerings.
  • Distributed order process.
  • Many different types of services/vendors.
  • Problems with AP control of payment.
  • Incorrect allocation to end-user departments.
  • Accruals for services not invoiced are difficult.
  • Gathering information for budget forecasting is difficult.

Solution

An IPI team of experts performed the following services for the client:

  • Build-out of asset database to track each line item.
  • Scrub of all lines, dial tests and address verifications.
  • Claims submitted to vendor and managed by IPI.
  • Weekly meetings and on-going consultation.
  • Develop and implement Process.

Results

  •  Substantial reduction in ongoing costs totaling $1.8 million in the first year from the bill audit.
  •  Substantial credits due back to the client totaling $2.3 million.
  •  Complete audit of all services that the client subscribed to:
    • Data – ATM, Frame, Private Line, etc.
    • Voice – wireless, calling cards, long distance, toll free, access circuits, etc.
  • Contract negotiation for wireless solutions and roll out.
  • IPI was engaged to develop a comprehensive Voice and Data WAN RFP for all sites. Work included conducting a benchmarking study of recently filed contracts and subsequent negotiation of multiple contracts. As a direct result of the RFP and negotiations, the client realized significant additional savings, totaling over $3.4 million in a single year.
  • The total savings, refunds, and credits represented a 35% reduction in expenses as a result of our efforts.
  • The client now has an accurate inventory of all telecom expenses and processes to metter manage the billing.
  • Since 1999, IPI has been actively managing the client’s billing.
  • As a result of our bill audit, the client has significant funds available for IT projects.