A Case Study in Reducing Support Costs
We’ve written several blogs about how to save money on your support costs—and dedicated an eBook to the topic—but you might be wondering how these strategies work in the real world.
Here’s an example of how we helped a global semiconductor and wireless telecommunications company save more than $260,000 on their maintenance renewals.
Before paying invoices, the telecommunications company required its departments to perform quality checks as a standard operating procedure. This helped the organization verify that the expenditures were necessary and the invoices were accurate. For the IT department, this was never a problem—until a manufacturer started sending one or two maintenance quotes daily.
With the frequency and volume of these invoices, the IT team couldn’t keep pace. By focusing on the quality checks, the team was also neglecting more important work.
To compound the problem, the department was experiencing significant communication barriers with the assigned vendor representative. The team struggled to interpret the multiple-page PDF files, which contained cryptic terms like “back dates” and “re-certifications.” They also felt the vendor representative was unresponsive to their requests for more information.
Unsurprisingly, the team eventually stopped opening the emailed quotes altogether. That meant the company wasn’t purchasing any renewals, and its relationship with the manufacturer grew strained.
Rather than risking steep expiration fees or leaving critical equipment unsupported, the company turned to ASG for a maintenance contracts assessment.
To get a better sense of the company’s needs, an ASG maintenance specialist spent a week onsite to meet the team and collaborate with the individuals who managed the equipment. She worked with the IT team to track its assets, consolidate its quotes, and streamline its contract process.
Critically, she also worked as the company’s advocate and leveraged her extensive knowledge of the vendor programs to identify errors within the invoiced support terms.
Most significantly, she determined that the vendor had submitted invoices based on its current support programs—without realizing that the company’s contracts were grandfathered in under the old programs. In other cases, the company had a standing arrangement with the vendor, which excluded them from new pricing structures.
She also discovered that the vendor representative wasn’t necessarily unresponsive. The vendor had simply assigned the wrong person to the account—someone who didn’t have the right knowledge to answer the team’s questions.
Armed with our in-depth analysis, the company ultimately paid $260,000 less than the vendor initially invoiced—covering the cost of the assessment several times over.
Altogether, our work also allowed the staff to focus on more important projects and proved the value of having another set of eyes on the contract process.
Curious what savings might be hiding behind your maintenance renewals? Talk to a maintenance expert who can help you cut unnecessary support costs—consider signing up for a free assessment.