Enterprises Missing Network & Telecoms Savings of up to 15 Per Cent

Detailed due diligence and clear strategy offer CIOs the potential to save £millions, says Hudson & Yorke.

Multinational businesses could reduce their Total Cost of Ownership (TCO) by an average of ten to 15 per cent across their global telecommunications portfolio, according to specialist consultancy Hudson & Yorke.

The consultancy estimates that there is an opportunity to achieve even greater reductions by selective sourcing within the telecommunications portfolio: for example, the aggregation of mobility services into a single international managed deal could reduce mobility TCO by up to 20 per cent.

With the annual telecommunications TCO of a multinational business ranging from £50 million upwards (sometimes exceeding £100 million per annum for the largest companies), the annual potential saving is several millions.

If the TCO is aggregated into a five-year package, the deal values are enormously attractive to the supplier community, saving many millions for the enterprise customer over the term of a contract.

Hudson & Yorke, which provides strategy, sourcing and governance services to some of the world’s largest organisations, has found that companies often don’t build in sufficient time frames for comprehensive due diligence and clear strategy development. This leads to problems and cost-escalation as contracts are negotiated and delivered.

Developing a detailed due diligence programme allows companies to properly understand their current environment, making them better placed to build the strategy and negotiate a fit-for-purpose contract for the provision of telecommunications and network services. In addition, Hudson & Yorke also constructs detailed TCO business cases for clients.

"The key to optimising TCO is to do the ground work," explained Harry McDermott, Chief Executive at Hudson & Yorke. "A detailed programme of due diligence gives you a comprehensive understanding of the contracts, assets, people and costs currently in place. This, in turn, builds a robust foundation upon which to formulate the strategy to underpin contract negotiations. 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."

"Without an accurate baseline TCO, there is no foundation for reliable contract negotiations and the inevitable outcome of a contract signed on this basis is, at best, a full re-negotiation within 12 to 18 months and, at worst, a collapse of the deal," McDermott concluded.

Notes to Editors

About Hudson & Yorke Limited

Hudson & Yorke is a specialist consultancy providing large end-user organisations with Strategy, Sourcing and Governance services in the business-critical area of telecommunications and networks. It provides a comprehensive range of consultancy services covering the full lifecycle of any major telecommunications contract from pre-contract strategy to contract negotiation and service delivery.

Hudson & Yorke is unique in its focus on this area of the consulting market and has brought together an experienced team unmatched in its knowledge of designing and managing complex outsource and managed service agreements. For more information, visit www.hudsonyorke.com.

For more information about Hudson & Yorke, contact Phil Dwyer or Chris Holder at Brand X PR:

Telephone: + 44 (0)20 7099 3860

Email: pdwyer@brandxpr.com / cholder@brandxpr.com