Vendor Managed Services Case Study
Telecom vendors are entering the Telecom Expense Management (TEM) market at a record pace. Most often, these are referred to as vendor Managed Services contracts. These oﬀers can be very enticing, but clients would be wise to court carefully. Contract promises are frequently unfulfilled and the huge savings supposedly generated by these contracts are outweighed by costly errors and wasted time. Read below to learn how RadiusPoint’s Managed Services are different.
Case Study Background
RadiusPoint manages the expenses for a manufacturing client with over 240 locations nationwide. This client, against the recommendation of RadiusPoint, signed a Managed Services contract that covered 2,700 landlines. This agreement charged a monthly fee for managing all moves, adds and changes plus gave them a reduced rate on their line and feature charges. The initial cost savings appeared to create a positive ROI beneﬁt. However, the cost savings were hard for the client to identify and too time-consuming to validate.
The beneﬁt of consolidating the invoices and vendors became a nightmare as the vendor made the billing even more consuming. To compound the problem, the local representative assigned to the account was reassigned due to the vendor’s merger. All knowledge of the billing issue from the vendor’s perspective was lost, and the client was forced to train the new representative. As time continued, the promises made in the managed services agreement faded.
RadiusPoint was able to shortpay the invoices and put the overcharged amounts in dispute. To complicate the billing further, as credits for errors were given erroneous charges were placed into billing to oﬀset the progress made. Only when RadiusPoint escalated and stressed that FCC complaints would be ﬁled if corrections were not made in a reasonable timeframe did the vendor’s representative coordinate a billing team to resolve the problems. Since the issues have been resolved, and the vendor knows we are watching, the continual errors have subsided.
The errors included billing for lines that were not ported over to the vendor, neglecting to give signing and anniversary credits, not charging the correct contract line rates, charging on features that should have been waived, and charging long distance accounts that did not belong to them.