Gaining Visibility in to Costs of Recurring IT Vendor Services

When clients engage us to help them manage costs, our key first step is to give them better visibility in to their costs.

 

Without Visibility

We know our important services. We usually know what bills pay for services, but little else.

A service can be anything, including an IT support and maintenance contract, or a voice or data line. (It can even be a waste management contract or bill from a credit card processor.)

Vendors provide bills, but rarely electronic bills.

Vendors don't provide consolidated bill break down with a single pane of glass.

 

IT Department

 

 

Finance

 

Service

Cost

Bill

 

Cost

Bill

Service A

?

Bill A

 

 

 

Service B

?

Bill A

 

1000

Total Bill A

 

 

 

 

 

 

Service C

?

Bill B

 

1000

Total Bill B

 

Finance and IT have two different views of the world.

 

With Visibility

Bills are consolidated and broken down.

We can see connections, without always having to flip through paper bills.

Service

Cost

Bill

Service A

500

Bill A

Service B

500

Bill A

 

1000

Total Bill A

Service C

500

Bill B

Service Z

500

Bill B

 

1000

Total Bill B

 

With Visibility we can manage each cost

Eliminating or consolidating unused and underutilized services, fixing errors, and renegotiating rates.

Service

New Cost

Bill

New Cost

Savings

Notes

Service A

500

Bill A

350

150

Re-negotiated to market rate

Service B

500

Bill A

350

150

Re-negotiated to market rate

 

1000

Total Bill A

700

300

 

Service C

500

Bill B

350

150

Re-negotiated to market rate

Service Z

500

Bill B

0

500

Unused service is removed

 

1000

Total Bill B

350

650

 

 

2000

GRAND TOTAL

1050

950

almost 50% savings

 

 

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