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Enterprises struggle to balance global connectivity expenses efficiently.
With complicated contracts, outdated systems, and a plethora of service providers, the task can seem overwhelming. These issues lead to increased costs, operating inefficiencies, and a lack of optimal service quality.
This article outlines practical strategies to navigate these challenges effectively. Discover key methods to cut global connectivity costs, optimize your connectivity lifecycle, and ultimately transform challenges into savings and growth.
Review provider contracts frequently
Regularly reviewing connectivity provider contracts is essential for managing expenses effectively. Examine long-term contracts closely, which can be costly due to their automatic renewal clauses for services that may no longer be necessary.
Many connectivity services operate under 1- to 3-year contracts. These contracts can auto-renew unless the company provides a written notice before expiration. Unexpected renewals lock companies into expensive agreements with outdated rates. Missing renewals can also result in early termination fees for services no longer needed.
Beginning contract renewals well in advance (12-18 months prior) allows for a critical evaluation of current needs with services being provided. This foresight prevents getting locked into outdated rates, ensures more favorable terms, and reflects current market conditions.
Upgrade outdated legacy systems
Businesses often fall into the sunk cost fallacy with legacy systems, mistakenly thinking ongoing investment in antiquated technology is more cost-effective than upgrading.
When a company maintains outdated connectivity services, the maintenance and the inefficiencies result in higher costs than more modern connectivity solutions. Modernizing to newer technology, like cloud-based connectivity systems for enterprises, cuts down maintenance costs and eliminates location-based restrictions.
This approach reduces operational costs and enhances service quality, resulting in more intelligent resource allocation for multi-location enterprises.
Optimize the entire connectivity lifecycle
Optimizing the connectivity lifecycle encompasses more than just managing current telecom and networking services. It involves a thorough assessment to uncover inefficiencies and implement cost-cutting improvements throughout the technology lifecycle.
Traditional managed service providers (MSPs) specialize in specific areas, such as advisory or technology expense management. However, a more comprehensive approach covers more than one aspect, including advisory, sourcing, implementation oversight, lifecycle support, expense management, and renewals.
A global connectivity MSP that covers the entire scope of needed services delivers optimizations that regular MSPs simply miss or can’t deliver. This type of partnership eliminates overlooked inefficiencies, like overlapping services from 3rd-party vendors or situationally over paying for too narrow support services.
Holistic connectivity lifecycle optimization ensures all stages of the connectivity services lifecycle receive proper attention, improves operational efficiencies, and enhances service quality.
Explore alternative connectivity solutions
Considering alternative solutions is crucial to achieving cost-effective and efficient connectivity services. Conduct a Request for Proposal (RFP) to understand the offerings of various vendors. Or, leverage a global connectivity MSP like Advantage to provide sourcing options.
In-house teams that only engage with current providers for renewal discussions need more market insight to ensure competitive rates and services. An RFP or leveraging a global connectivity MSP allows a company to compare offerings side by side, providing a comprehensive view of current market pricing and services.
This knowledge equips businesses with the leverage to negotiate better terms with their incumbent provider and find competitive alternatives.
Consolidate managed service providers
Managing multiple MSPs leads to unexpected in-house costs for IT teams. This issue stems from staff spending time micro-managing various partners, which increases in-house administrative burdens.
Consolidating MSPs can save significant time and resources that staff would otherwise spend navigating different providers in-house. This approach makes managing connectivity services easier and more efficient for small enterprise teams.
To save the most, seek providers covering every pillar of global enterprise connectivity. This strategy includes essential connectivity services and advanced solutions such as enterprise cybersecurity, cloud services, global network management, etc.
Partner with providers who waive their fees
By bundling, clients maximize discounts and reduce the overall burden on in-house resources. They can also avoid paying standard service fees by partnering for the complete package of connectivity solutions.
Advantage Communications Group is a partner that services every pillar of global enterprise connectivity. Moreover, Advantage is uniquely positioned to waive traditional service fees when businesses partner with Advantage to manage the entire technology lifecycle.
Conclusion
We have a variety of options for cutting connectivity costs without compromising quality.
Review provider contracts regularly to ensure you're not locked into costly, outdated terms. Upgrade legacy systems to eliminate inefficiencies and foster wiser long-term resource allocation. Explore alternative connectivity solutions through RFPs or strategic sourcing partners, like Advantage, to gain leverage in negotiations.
Additionally, consolidate MSPs to simplify management and cut in-house costs. Optimize the entire IT lifecycle for a comprehensive approach to global connectivity and enhancing operational efficiency.
Finally, partnering with a provider that services every aspect of global connectivity services and waives traditional fees offers significant long-term cost savings.
If these strategies resonate with your business needs, it’s time to contact the experts at Advantage Communications Group to learn more about comprehensive solutions that will save you the most in the long run.