<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=240394&amp;fmt=gif">

REQUEST A 1:1 WALK THROUGH OF A GLOBAL FINANCIAL SERVICES CASE STUDY 

CLIENTS CHOOSING TO RE-THINK AND RE-TENDER THEIR NETWORK SERVICES ARE REAPING THE REWARDS WITH SAVINGS NET OF INVESTMENT IN THE 10-40% RANGE.

 

There’s no getting away from how important network services are to organisations; failure of the network can cause significant financial and reputational damage.


For large national or multinational organisations, the network will account for a sizeable slug of IT spend often running into £100m’s over the span of a contract, with little way of knowing whether the price is fair for what should be a market driven commodity buy.


The good news is that changing technologies and a changing marketplace have coincided recently to create significant opportunities to reduce costs and optimise performance.

Opportunities for significant financial savings are due to the changes in the maturing of service integrators (SIs), adoption of new network technologies and shifting away from traditional network topologies. 

 

MATURING OF GLOBAL SERVICE INTEGRATORS 

This is very important, being both disruptive and facilitating major and regional network providers. Traditionally service integrators, would have played a limited role in network service aggregation with some service management wrap thrown in. We’re now starting to see true service integrator behaviours and benefits in this space. They have seen the prize and the commercial advantage they can bring by playing off network providers against one another.

ADOPTION OF NEW NETWORK TECHNOLOGIES

Market activity is also being encouraged by technology advances. The emergence of SD-WAN has encouraged organisations to take a holistic view of their network architecture rather than tactical end-of-life refresh making re-tendering an obvious choice. Organisations making the choice to adopt new technologies are enjoying material savings alongside service and security benefits, both from their supply chain, but also with their internal organisations from automation and orchestration.

SHIFT FROM TRADITIONAL TOPOLOGIES

Network costs are further impacted where the architecture shifts from traditional network topologies to utilising lower cost non-dedicated links to carry non-critical traffic.

AWARD-WINNING NETWORK SOURCING 

This project won the 'International Project of the Year' at the Global Sourcing Association Awards 2018 and was the Finalist in the 'Commercial Management', 'Change & Transformation' and 'International Project' categories of the Management Consultancies Association (MCA) Awards 2019.

 

The outcomes for the client far exceeded their expectations: €92 million in savings, accelerated value and certain outcomes, but also increased flexibility and proactive innovation.

 

The solution for the client included a tendering process that encouraged supplier innovation, enabling them to embrace best-in class technology.

 

The maturity of Software Defined Networks has coincided with an increasingly vibrant supply market.

TECHNOLOGY DISRUPTORS

Software Defined Networks appeared on the hype-cycle a few years back and is now tantalizingly close to having use cases that may accelerate it into widespread adoption. The benefits case may lie more in it’s potential to enhance security or orchestrate change dynamically than in direct financial savings.
Nonetheless, the technology is proving a catalyst for wider change. The compromise outcome for organisations considering infrastructure refresh may be to move to ‘SDWAN ready’ status rather than go all-in, but the consequence is that it makes sense to re-tender the full services as the investment is coming regardless.
.

MARKET DISRUPTORS 

This technology disruptor coincides with an increasingly vibrant supply market, particularly with Eastern Vendors picking up the Service Integrator gauntlet to broker competitive pricing between carriers in geographic regions.
Other technology disruptors are at play such as the potential to move workloads off the corporate network through maturing SaaS offerings or re-architecting resilience for secondary sites utilising lower cost internet links as back-ups.

Historic inertia, and an underestimation of the time and commitment required, are the two main reasons organisations do not revisit their Network Sourcing strategies.

HISTORIC INERTIA 

It is notable how long many or even most network providers have remained in place with larger client organisations. Sure, services are stable and that’s a good thing, but how many of these client organisations can say they are enjoying best value for money?

 

The prime reasons for this historic inertia in the marketplace are threefold:

• Firstly, when an aspect of infrastructure so key to business operations performs with monotonous reliability, you don’t go changing things on a whim.


• Secondly, changing supplier means a wholesale hardware refresh which has always been a hard sell laced with suspicion that the driver is really technologists trying to break into the sweet shop.


• The third form of inertia has come from the Telcos. Their rational probability x cost equation has made it very easy to no-bid competitive tenders in favour of selling extra services and kit to existing clients.

UNDERESTIMATING THE TIME & COMMITMENT REQUIRED

Displaying a credible level of intent is key to successful network sourcing. Vendors governance will qualify each opportunity to avoid burning resources on a tender with no real prospect of unseating the incumbent.

 

They will also be wary of clients seeking to carry out some benchmarking on the cheap.

 

Being able to demonstrate commitment to the process is important. This may come in the form of the time you will be investing from the client side and the evidence of senior stakeholder sponsorship. Engaging a recognised advisor in the field also helps considerably in persuading suppliers that there is a genuine and fair process about to ensue.

 

It is crucial to allow enough time to conduct a comprehensive network sourcing and transition exercise, to avoid a ‘keeping the lights on’ cliff edge or default to an expensive extension with the incumbent.
Network sourcing strategies need to explore the art of the possible with service providers and network & communications technology companies ahead of or during the tender process to inform the solutions and identify the right potential partners/solutions. This period of learning and evaluation needs to be factored into the plan and market engagement.

 

Organisations should take a long-term strategic view of their contract lifecycles. As a rough guideline, traditional large scale network sourcing exercises should commence at least 24 months before the current contract ends to allow for network transition activities which can take a year or more due to complex dependencies on multiple third parties. If less than 24 months remain, an accelerated sourcing approach should be considered to reduce the time to contract signature.

 

View 'Network Sourcing Timeline' >

 

 

Coeus Consulting is an FSQS-listed, independent, award-winning IT Advisory that stands alongside clients to deliver strategic change to the business.

1. INDUSTRY-LEADING EXPERIENCE

NS cs cover

We operate at a senior level of some of the world’s leading organisations, applying our rich and deep expertise to the three phases of Sourcing project life cycle: strategy, execution and optimisation.

 

To the left is one of our Award-winning Sourcing case studies. Coeus has delivered similar programmes for global companies including in the Financial Services and Energy sectors.

 

Get in touch to request details.

2. WORLD CLASS EXPERTS

John Gorrell

John is an award winning Strategic Sourcing specialist whose accolades include winning the 'Sourcing Works - Value Creation' Award (2019) and being a Finalist in the 'Strategic Leader of the Year' category (2018) at the Global Sourcing Association awards.

 John is a management accountant and brings strong commercial acumen to contract formulation, technology solutions and service models. He works with CXOs and direct reports.

Vishal Patel

Vishal helps organisations deliver benefits from Cloud & Network technologies. His experience includes the identification and delivery of IT cost efficiency initiatives, technology roadmaps, systems architecture and app rationalisation.

Achievements include advising a large European company with the tender and migration of  contact centres and unified communications services to a new provider, saving €60m+ over the contract term.

Simon Reynolds

Simon is a transformation leader who was shortlisted for ‘Team Leader of the Year’ by the Management Consultancies Association (2019).

He has a strong track record of managing multi-million pound transformation programmes, helping them embrace digital technology and transition. Simon lead the International Project of the Year (GSA Awards, 2018), a Network and Communications Sourcing programme that delivered c. €80M savings. 

4. FSQS-LISTED

FSQS-reg-stacked-col_2-2

Coeus Consulting have been awarded registered status on the Financial Services Supplier Register, having completed the Stage 2 Qualification for the Financial Services Supplier Qualification System (FSQS).