WAN contract renegotiation – why do it?
The annual running costs of a corporate global wide area network (WAN) are often significant – running into many £M’s per annum in network provider charges. Consequently, there is value in regularly reviewing, challenging and if necessary re-tendering for this service. CCM offers some tips for IT management teams and project managers embarking on a WAN contract renegotiation exercise:
Control the project vision and business case
There’s plenty of opportunity to expand the scope to bring in more service offerings and functionality on your WAN – often without increasing costs. Equally there is a risk of over-extending yourself and delaying when cost savings can be realised.
Consider whether to use a third party consultancy with industry expertise to support the RFP process and advise on likely outcomes. They can support you in market analysis, vendor selection and contract negotiation.
When planning, don’t underestimate the time required for document review and approval. There are some complexities and high value decisions to make that will take time for management to digest and the appropriate decision reached. Use cost avoidance to drive the delivery. Project managers should articulate the link between cost savings and delivery milestones – which will demonstrate the actual cost of unnecessary delay in decision-making.
Ensure the draft contract isn’t overly complex. Remove out of scope and unnecessary sections. A simpler contract will be easier to agree and quicker to sign off.
Keep internal documentation succinct
There is a tendency to include all known information in internal reporting – which leads to lengthy documents lacking clarity. Keep technical content to a minimum and focus on what information management needs for decision-making purposes.
Cost savings reporting
Cost savings are usually the key driver. Spend time defining a clear format for reporting spend and cost savings. Use this template throughout the project so it becomes a consistent view.
WAN contract renegotiation – where to find out more
Please get in touch if you are about to embark on a similar WAN reevaluation and renegotiation project to find out how we can help.