Global Law Firm – Case Study – Firm

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How Tellennium captured  $300,000 in incorrect and  overcharged billings for the firm 

The Situation

For law firms, efficient communication is absolutely critical. For one of the largest firms in the world, with nearly 1,000 lawyers spread across 50 integrated practice areas and six different countries, simply managing the various telecom platforms that enable these communications is a daunting task. 

The firm’s goal, just as it is with the work they do for their clients, is accuracy and efficiency – in this case, regarding the management of all of the telecom bills from all of the various providers providing services to all of the firm’s offices and staff members. 

Why is accuracy important? According to Gartner Group, 12 to 20% of telecom charges are incorrect, with 85% of the errors in the service provider’s favor. For a top 10 firm, this means telecom billing errors could cost them $300,000 per year or more.

As for efficiency, keeping all of the telecom-related invoices (coming in from all of the different service providers to all of the firms’ offices) organized and paid is a time consuming task. There are wireline data, voice, and video providers, wireless providers, and telecom and networking equipment installation and maintenance providers – just to name a few. And, there is also the never-ending task of negotiating and renegotiating telecom contracts as they come up for renewal, to make sure the firm is getting the best rates possible. Doing all of this work costs the firm (and all other companies of a similar size and scope) precious time and money, too.

And yet, even the best run companies don’t know that such a high potential for telecom billing accuracy and efficiency improvements exist. “We thought our telecom billing and contract situations were fine,” said the firm’s Manager of Telecommunications. “Invoices were paid out of each office, not centrally out of Corporate.” 

For a large law firm (or any other large company) with a national or international reach, decentralized telecommunications management can be very costly, in terms of both missed errors and distributed management of expenses. There needs to be the right process, backed by the right systems, to pull in all of these invoices and centralize the management of such a large and critical budget category as telecom.

For that, these law professionals at turned to the Integrated Telecom Management® professionals at Tellennium.

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We have had a great experience with Tellennium, I would encourage anyone to have them at least take a look at their invoices.

– Jeff, Manager of Telecommunications, Global Law Firm

The project included:

The Solution

Using its “Tellennium’s Integrated Management System” (MoT®), Tellennium now manages the firm’s telecommunications billing, usage, inventory, services, and contract negotiations on the firm’s behalf. According to the Manager of Telecommunications, this has already resulted in time and money savings. 

“Sending all of our invoices to Tellennium, and allowing them to review and pay them, saves time and, possibly, personnel,” he stated. “I feel much safer having them review our invoices so that we know they’re correct.” 

And Tellennium’s knowledge of telecommunications pricing, tariffs, and contract negotiations saved the firm money in other ways. 

“We obtained significant credits from our local telecom vendors for incorrect and overcharged billing,” he said. “Also, Tellennium discovered that one vendor had changed its pricing in the middle of a contract. They then worked with that vendor to obtain a credit for us.”

The Results

Kindred’s total cost savings has exceeded $12 million to date from utilizing Tellennium’s expertise, telecom expense management processes, and system. Senior Director-IT Infrastructure, John Vorreiter, credits an attention to detail in acquisitions management and change management within Tellennium. 

Effective consolidation of contracts requires an in-depth knowledge of multiple vendors’ billing practices, regional differences in services, and benchmarking against other organizations’ costs. And in an acquisition environment where the acquired company’s contracts may have been neglected for a period of time before a deal was finalized, rectification of those oversights in Kindred’s favor occurs much more quickly. 

Tellennium has taken those tasks off the shoulders of Vorreiter’s Engineering Group, freeing up thousands of man hours for more strategic projects; particularly important as the health care sector continually faces a shortage of qualified IT professionals.

Finance departments similarly benefit as “the number of people that would be required to review all of these bills and adjudicate back through the contracts to make sure we are paying the right amounts or being billed the right amount would just be insurmountable,” says Vorreiter.


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