Case study - Sourcing strategy for Europe-wide mobile telecoms
Client
- One the world’s largest IT services and solutions providers with over 150,000 staff and serving customers in over 100 countries
- Scope covers 14 countries, more than 10,000 sims and a spend of approx. Euro 5m p.a.
- Existing MSA but only 50% spend through preferred network
- With the MSA requiring renewal, an ideal opportunity existed to define a pan-European sourcing strategy
Approach
- Review of 176 data sources; contracts (MSA and local agreements), CCM tool, invoices, call analysis and spend details
- Development of metrics and benchmarking
- Supply market analysis
Results
- Analysis revealed large variations in APCU (average cost per user)
- Benchmarking revealed commercial opportunities through market leverage
- Developed three sourcing strategy options; 1) Tactical limited-scope retendering 2) Negotiation and MSA renewal 3) Full, comprehensive European tender
- Recommendations to execute full, comprehensive tender for all requirements and to put in place new MSA and local arrangements to deliver savings of 15%-20%
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