As a result of a review of its Managed Network Services contract, ElectraLink has selected a new service provider. The deal will deliver £10m in savings to ElectraLink over the next five years.
Following the deregulation of the electricity market in the UK, ElectraLink was formed as an impartial service provider, facilitator and co-ordinator of data communication and associated services for business to business communities, operating in the gas and electricity markets.
The original five year contract for the provision of a fully managed data transfer service was due for renewal. This prompted ElectraLink to determine whether the managed service was meeting the expectations of its Users prior to re-negotiating a further term. Mason Communications conducted the survey of ElectraLink’s Users and discovered that, although they were quite satisfied with the service, they were keen to see a reduction in costs.
Mason developed a comprehensive cost model for the Managed Service as a benchmark prior to negotiations with the incumbent service provider. Some improvements in the terms and conditions of the contract were agreed, although the service provider did not approach the pricing levels projected in the benchmark model. ElectraLink consequently accepted Mason’s recommendation to embark on a formal procurement process to solicit proposals from other service providers. Mason assisted ElectraLink in the production of the Request for Proposal (RFP) documentation. The responses were evaluated based on service levels, network performance and cost, with EDS being finally selected as the new service provider. The new service level agreement offers substantial improvements in network performance for ElectraLink’s Users as well as dramatic cost savings.
“The team at Mason developed an excellent understanding of our customers’ communication needs. Their in-depth knowledge of the market and technologies was key to delivering this impressive saving for our business and our Users,” said Dave Mutton, Chief Executive of ElectraLink.
Peter Moray, Director of the Enterprise Business Unit in Mason added “We always recommend that organisations conduct a regular review of their service providers as the market is continually changing and the service needs of every organisation changes. With the right approach, substantial cost reductions are often achievable without compromising service levels.”
NOTES FOR THE EDITOR
About Mason Communications
Mason is a leading, independent, European telecommunications & IT convergence consultancy providing business solutions to public and private sector organisations worldwide. Mason’s key services include: strategic & business planning; procurement & outsourcing, design & engineering, programme & project management, network optimisation and training courses.
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