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Case
Study US LEC
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Business:
US LEC (Nasdaq: CLEC) is a telecommunications carrier providing
voice, data and Internet services to business customers throughout
the southeastern and mid-Atlantic United States. US LEC was
founded in 1996 and is headquartered in Charlotte, NC.
US
LEC currently offers local, long distance, calling card, toll
free, dedicated Internet, digital private line and frame relay
services to customers in selected markets in Alabama, Florida,
Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey,
New York, North Carolina, Pennsylvania, South Carolina, Tennessee,
Virginia and the District of Columbia. US LEC also offers
selected voice services in Arkansas, California, Connecticut,
Indiana, Massachusetts, Montana, Nevada, Ohio, Texas and Wisconsin.
Challenge:
US LEC was faced with a number of challenges typical of rapidly
growing technology oriented companies, including limited time,
limited resources, and ever-constant budget pressures to continue
to grow the business. In addition, US LEC implemented several
cutting-edge technology solutions to add valuable services
for their customers and to improve internal business processes
and existing services. With each additional new technology
solution implemented, the technical support services environment
became increasing complex and costly.
Solution:
US LEC engaged MBA Computer Solutions in 2001 to assist
them in realigning their support services with their current
business goals and future growth requirements. Through AMP,
MBA's technical services procurement and management program,
US LEC identified opportunities to reduce the cost of support
services by eliminating or reducing contract administration
costs, insourcing services on less critical equipment, and
negotiating for added values from support services providers.
All
maintenance contracts and service agreements were coterminated,
eliminating the need to renegotiate with service providers
throughout the year. This helped US LEC increase control over
support services spending and created one easily managed AMP
Master Services Agreement.
Ongoing
administration of all services provided through the AMP agreement
is performed by MBA Computer Solutions. The elimination of
day-to-day contract and vendor management tasks nearly eliminated
US LEC's administrative costs associated with the required
support services.
Results:
US LEC reduced the direct cost of support services by more
than 38%, and virtually eliminated costs associated with ongoing
management of contracts and service providers, further reducing
overall support costs by an additional 3.6%.
All
primary maintenance contracts and service agreements are now
aggregated into one easily managed AMP Master Services Agreement.
Service levels are reevaluated annually and are realigned
each year to more efficiently fulfill then current business
requirements.
The
final result is one AMP Master Services Agreement custom fitted
to US LEC's current business requirements that fulfills support
needs in the most efficient and cost effective manner possible.
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