1) We have a telecom department, why should we outsource?

Answer: Certain projects, like bill audits, RFPs and contract negotiations, require a comprehensive understanding of the carriers' contract and implementation processes, including the relationship between contracts, tariffs and pricing guides, carrier negotiation strategies and tactics, and limitations in the carriers' billing systems. Because of our extensive experience working for the carriers, we have the in-depth knowledge necessary to address the variety and complexity of issues involved. It's rare for the staff of an internal telecom department to have accumulated such first-hand experience.

In addition, these projects are very time and labor intensive and thus, require companies to devote internal resources at the expense of the company's day-to-day operations.

Finally, outsourcing these projects will give you additional negotiating leverage with your incumbent carrier(s) in the form of a new perceived risk of loss, as well as add an element of objectivity to the decision making process.

 

2) Another firm that seems to offer similar services to the ProfiTel Group has contacted me. What makes you different from them?

Answer: Extensive relevant experience. Our principals are seasoned veterans from the "Big 3" long distance carriers. Collectively we have more than 40 years of telecommunications experience, including negotiating hundreds of voice and data contracts on behalf of the carriers. We were trained by the carriers to understand their contractual processes, including pricing, negotiating, and related strategies and tactics. In addition, we have managed various audit functions for the carriers. This knowledge and experience forms the foundation upon which all of our services are based.

Unlike many other firms, we are not sales agents for any carrier nor are we affiliated in any way with any vendor. We do not earn any fees from vendors. In fact, our consulting contract expressly states that vendor selection is at the sole discretion of our clients.

There are firms that offer simple phone bill audit services, others offer comprehensive audits of your entire telecommunication network and there are firms that offer contract procurement services. The ProfiTel Group offers all three. This is significant because all past overcharges should be identified before the execution of a new contract. The attempted recovery of these overcharges provides you with additional leverage in your contract negotiation and is one of several variables that should be considered in the development of your procurement strategy. In addition, our contractual knowledge and experience is critical in maximizing our clients' audit recovery.

If your company is considering outsourcing a one-time telephone bill audit and/or contract procurement function to an outside consulting firm, we suggest you ask all prospective consultants the following questions:

1.

Does your firm have experience on both sides of the negotiating table, on behalf of carriers and end users?
2. How many years experience do you have in telecom contract negotiations?
3. How many years experience do you have in telecom bill auditing - and not merely phone bill audits?
4.

Does your firm have a telecom attorney on your staff that is available to review contracts from a legal perspective?
5. How is your company compensated for its services?
6. How are the individuals who will be working on the project compensated?
7.

Do you have any relationships with any carrier or any other related vendor that would bias your performance?

The answers to these questions should be considered when selecting a firm to assist you in reducing your telecom expenses.

3) How is ProfiTel Group compensated?

Answer: We are only paid on results. Our fees are a percentage of the savings achieved as a result of a successful audit recovery or the implementation of a new cost-reducing contract. No one in our firm receives a salary. Everyone's financial interest is totally aligned with our client's interest in reducing costs and recovering past overcharges.

4) When is the best time to engage the ProfiTel Group?

Answer: Today. The carriers' liability for past overcharges is limited by a defined time period. Any recovery to which you may be legally entitled could be lost by a delay in filing a claim for the recovery.

In addition, we have been very successful in reducing our clients' cost at various stages of their contracts. We have also been quite successful in renegotiating our clients' contracts in mid-term and we have assisted companies in improving their contractual rates, terms and conditions after they had received responses to an internally issued RFP.

There is no good reason to wait. By waiting you run the risk of losing money, by moving forward and securing a more favorable contract or recovering overcharges you incur no out-of-pocket costs and can start saving money sooner.

5) Our current carrier told us that we have their "best rate". Why do you think you can improve upon that?

Answer: Some of our biggest improvements have come after the carrier has told our client that they have been given their "best and final offer". As former industry insiders we know that the carriers' pricing groups intentionally keep their sales force "in the dark" when it comes to the best available pricing. What one region of the country thinks is their "best rates" may be 10-25% higher than the rates that same carrier is offering for a similarly sized customer in another region of the country. We use our experience and our national frame of reference to get you the lowest rates available.

6) How much of my company's resources will be required?

Answer: ProfiTel Group's services are designed to minimize our clients' resource requirements. In the case of a simple phone bill audit or a comprehensive review and audit of all of your voice and data invoices, your resource requirements would essentially be limited to the time required to gather your previous and existing contracts, as well as one month of associated invoices. In the case of a contract review and negotiation, our clients are encouraged to be as involved in the negotiation process as they want. We have managed RFPs and negotiated new contracts with very limited involvement from our clients. Alternatively, we have assisted in the contract procurement process in a more advisory role.

 

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