The Challenge
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Client Background:
Provider of seismic data acquisition and processing services for the oil and gas industry.
Initial Situation:
The client faced impending expired contracts but lacked the internal capacity to negotiate optimal rates and streamline their service portfolio. They sought a dependable partner to navigate the intricate contract negotiation process and secure the most favorable value-to-cost ratio for their required services.
Constraints:
Time pressure was the primary challenge, as multiple site contracts needed revision or termination while simultaneously aiming to renew existing locations within budget constraints before out-of-contract rates took effect.
Our Solution
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Assessment:
We conducted a collaborative review of the client’s location portfolio, identifying sites for migration, retention and removal. We thoroughly analyzed the service requirements for each position and formulated competitive rate and technology strategies.
Strategy Development:
Following a comprehensive needs analysis for each location’s requirements, we engaged in negotiations with their current provider. Concurrently, we explored options with alternative vendors and aggregators to ensure the most competitive rates for layer 2 network connectivity, Dedicated Internet Access (DIA) circuits, and fiber internet solutions for their office locations.
Implementation:
Through a series of strategic planning sessions, we meticulously reviewed pricing structures as well as technology upgrades and outlined the implementation roadmap. This ensured the client had a clear understanding of the next steps, facilitating a seamless installation process and smooth contract renewals for retained circuits.
Collaboration:
Throughout the entire engagement, from inception to completion, we maintained open lines of communication to address any client queries or concerns promptly. When questions arose, we diligently sourced accurate information to ensure client satisfaction. In instances where unforeseen issues emerged beyond our direct control, we leveraged our network to connect the client with appropriate resources for resolution.
Adjustments:
During the process, two locations unexpectedly incurred out-of-contract pricing. We swiftly intervened and introduced the correct departments to resolve those escalating rates.
The Results
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Outcomes:
Our strategic interventions yielded significant cost savings for the client. We successfully reduced their switched Ethernet expenses by 50%, resulting in an annual saving of $21,000 for a single service. Through skillful negotiation of their DIA circuit renewal, we secured an additional annual saving of over $8,000. In total, our efforts culminated in an impressive annual cost reduction exceeding $29,000 for the client.
Metrics:
N/A
Client Feedback:
Testimonials or feedback from the client regarding the impact of the solution.
Sustainability:
Explanation of how the solution provided long-term benefits and sustainability for the client.
Next Steps:
To explore options for their Canada locations, as well as SD-WAN projects.