UNDERTAKING TELEPHONY AUDITS

1
UNDERTAKING TELEPHONY AUDITS Achieving
Efficiencies Through Telecoms Procurement
21st May 2007
2
Presenters
UNDERTAKING TELEPHONY AUDITS Bruce
Harper Director Garry
Drinkwater Consultant
3
About Azzurri

• Backed by PPM Capital, the private equity arm of
  Prudential plc, Azzurri has a very strong balance
  sheet finance credentials
• Grown to circa 150m turnover business with over
  900 staff
• Vendor-independent consultative approach
• Quality ethos, environmentally responsible ,
  Registered to ISO 90012000
• UK-wide support with local response from over 200
  engineers
• HQ in Newbury, Azzurri currently has sales and
  support operations in Fareham, High Wycombe,
  London, Weybridge, Birmingham, Burnley, Hull,
  Leeds, East Kilbride, Los Angeles and Sydney.

4
About Azzurri

• What do we do?
• We integrate and manage voice, data IT
  infrastructures
• to help organisations in the public and private
  sector
• minimise costs optimise their productivity

5
Facts and Figures

• Managing over 250m worth of annual network
  revenues
• Saving customers over 40m in voice, data
  mobile costs
• Implementing IT communications solutions worth
  over 35m pa
• Maintaining over 16,000 PBX sites throughout the
  UK
• Global Remote Network Management
• Fully featured mobile remote access solution
  Azzurri i-pass
• Managing over 15,000 IP Ports and over 40,000
  mobile handsets
• Auditing over 1,200 of the UKs top businesses

6
Azzurris Public Sector Customers Include

• Public Sector Customers Include
• Buckinghamshire County Council
• Derbyshire County Council
• North Yorkshire County Council
• University College London Hospital (UCLH)
• Wiltshire County Council
• Royal Household
• QinetiQ

7
Azzurris UK International Clients Include
8
"AZZURRI CHALLENGES THE CONVENTIONS OF THE VOICE,
DATA AND IT MARKETPLACE. WE RECOGNISE THAT
TECHNOLOGY IS ONLY EVER A MEANS TO AN END. OUR
CORE BUSINESS IS ABOUT HELPING PEOPLE COMMUNICATE
MORE EFFICIENTLY" Martin St Quinton, Chief
Executive Officer
9
Products and Services
AUDIT AND CONSULTANCY
Audit and Consultancy to control voice, data and
mobile estate costs in the UK and Internationally
ICT SOLUTIONS
Design of systems and integration of components
to provide bespoke high end ICT systems
MANAGED NETWORKS
Total infrastructure management. The company
contracts all fixed and variable charges for
voice, mobile and data infrastructure
SUPPORT SERVICES
Single-source solution for complete support of
voice and data estates, through secure operation
centres. Increasingly pro-active

MANAGED SERVICES
Fully integrated converged single solution
supported by one brand, one customer data base
and one set of internal processes
10
What Have we
Done?

• Working with London Centre of Excellence

11
London Centre of Excellence

• 2006 Bob Fletcher of LCE (OGC) conducted a
  pilot to identify the success of independent
  Telephony Audits within the Public Sector
• Report Delivering Savings Through Telephony
  Audits
• Azzurri Involvement
• Co-operation with London Centre of Excellence
• Two London Boroughs
• Hammersmith Fulham
• Barking Dagenham

12
London Centre of Excellence

• Findings showed
• Significant savings can be achieved averaging
  around 20
• Highly recommended London Boroughs give
  consideration to using a specialist audit company
  to carry out a telephony audit
• LCE recommends London Boroughs consider using
  Personal Call Management for Mobiles

13
London Centre of Excellence
London Borough of Hammersmith Fulham

• Savings of approximately 32 identified across
  variable and fixed expenditure
• Main savings across
• - Tariff optimisation
• - Line rationalisation removing zero-billing
  lines

14
London Centre of Excellence
London Borough of Barking and Dagenham

• Savings of approximately 21 identified across
  mobile variable and fixed telephony
• Main savings across
• Directory enquiry use
• Call misuse premium rate numbers and out of
  hours calls
• Zero-billing handsets

• Savings identified of approximately 10
  identified across voice variable and fixed
  expenditure
• Main savings across
• Tariff optimisation
• Call misuse i.e. premium rate numbers, directory
  enquiries
• Removal of zero-billing lines

15
London Centre of Excellence
City of Westminster

• Implementation of Personal Call Management tool
• Monitor and track mobile usage
• Saving 16 at Council (20 is typical in private
  sector)
• Recording personal usage (can be charged back)
• VAT implications
• Azzurri product PCM Managed Service

16
London Centre of Excellence
Lessons Learnt

• Audit company cannot work in isolation
• Action will be required to realise savings
  identified
• Electronic billing simplifies the process
• May be reluctance in telecoms departments to
  acknowledge that savings are possible
• Resources to implement plan can come from the
  audit company

17
London Centre of Excellence
Scale of Opportunity

• Savings on telephony costs can be achieved
• Average 20 savings claimed by audit companies is
  not unreasonable, on some occasions savings will
  be higher
• Telecoms spend across London Boroughs was 48m in
  2004/5
• Assuming telephony expenditure is per borough
  1m, total annual savings could be around 6.6m
  across the 33 boroughs
• Azzurris broad range of telecoms services can
  deliver real savings and technology improvements

18
The Audit
AZZURRI WILL MAXIMISE YOUR AWARENESS AND
MINIMISE YOUR INVOLVEMENT
19
Information Gathering

• Recent bills
• Last quarters
• CD Rom or Full Paper Billing
• Website (password required)
• Site list with contacts
• Letter of authority / disclosure
• Copy of internal telecoms policy documents
• List of switches and maintainers
• Mobile user list

20
Audit Process
Collate data
Review data
Input analyse data
Inventory of data by site
Recommendations savings
Report and presentation
Discuss
21
Summary

• Savings on telephony costs can be achieved
• Average 20 savings claimed by audit companies is
  not unreasonable, on some occasions savings will
  be higher
• Telecoms analysis will identify
• Questionable invoices
• Identify the Total number of suppliers
  similar services
• Charging structures
• Time and materials (TM) service not contracted
• Contract rates overcharging
• Question existing services
• Validate cost centre recharges
• Azzurri value add services
• System Maintenance
• WAN Audit
• Mobile Benchmarking
• Personal Call Manager

22

• Next steps for NWCE Authorities
• Group or individual authority meetings to cover
  scope of service
• Letter of intent
• Contract and commercial models
• Project plan
• Timescales

23

• Open session Questions
• Visit our stand in the Exhibition Area
• websitewww.azzurricommunications.co.uk