• Providing sourcing advice across complex global telecommunication services
  • Procurement
  • Global VPNs
  • Service definition and SLAs

Reuters

Using competition and well defined requirements to reduce cost

Reuters is a major user of global telecoms services, and wished to reduce costs and improve services by using competition to get the best outsourcing deal. David provided sourcing advice, running a competitive procurement for a multi million pound global virtual private network.

David was responsible ensuring Reuters requirements were defined in a clear and robust manner, defining a variety of services and assessing volume requirements. He drafted and obtained approval from global (Europe, Far East and US) managers within Reuters to an invitation to tender, an evaluation process and criteria, and obtained agreement to it with complex propositions that were difficult to compare for a multi million pound global virtual private network.

Tenders were analysed, identifying the differences in offerings between suppliers and determining which supplier offered the cost and discount structure that best suited Reuters’ expected traffic profiles. The proposals prepared by the competing suppliers were translated into a single financial model. The model allowed easy comparison between suppliers on an overall, regional, country by country, or tariff by tariff basis. The model also allowed various scenarios to be explored, including whether other planned initiatives made any of the suppliers more favourable. The modelling made all cost elements of the proposals transparent, a fact which led to one supplier being excluded at an early stage. Further analysis focused negotiations with the remaining suppliers and enabled Reuters to secure significant tariff reductions.

The procurement enabled Reuters to transform both the costs and quality of its global services.