ASE was asked to introduce the concept of cost management to the Department of Working Age and Pensions (DWP) between 2006 and 2008.
Background
DWP required an independent verification of their Telecoms spend and needed to identify immediate savings, mid to longer term cost reduction opportunities and promote an ongoing culture towards cost awareness and management across the DWP organisation.
Approach
ASE provided specialist staff, who developed a sustainable cost awareness culture, majoring on contract management and optimum accessibility. A pre-requisite to all services provided was the delivery of good practice techniques, solution definition, skills transfer and enhanced billing options. Complete transparency of costs and services was sought taking into account the entire life cycle of the project.
ASE offered a modular service which was applied across both single and multiple sites to provide an overall corporate perspective.
The service provided the assessment of not only the current tariff and contract arrangements but also the retrospective billing.
Gaining an understanding of the total cost of Telecommunications provided realistic budgeting and affordability expectations in preparation for the national technology refresh programme.
Base lining the Telecoms services expenditure enabled stakeholders to verify which services were in use, which were still required and the total cost of each service offered.
The total cost for the service and inventory was rigorously reviewed annually with physical documented checks. ASE also initiated Annual Price Reviews (APRs) for all services to ensure best value for money at all times.
The cost saving initiatives crossed the entire spectrum of vendors and services averaging £4 million pa documented savings.
Outcome
- Voice service overview
- Rental and call billing review including risk/benefit impact analysis
- Succinct management data and full impact analysis
- Delivery Improvements (Incorrect billing & overcharges identified & actioned)
- Immediate & ongoing cost reduction opportunities
- Maximising the benefit to the customer of large corporate expenditure
- Transfer of cost awareness skills