Success Story: Nonprofit Organization Case Study
As a Human Services and Community Development agency, this Connecticut-based nonprofit organization needed to watch every dollar in its budget and to insure that money was spent on its community based programs and not on unnecessary operational costs. With a budget of $25 million and 20+ locations across the state this was a challenging task.
SITUATION
The organization had experienced significant growth over the years. Telecommunications costs had skyrocketed and were decentralized. Location based programs were ordering and paying for telecom services with little oversight at the corporate level. Annual telecom spend had increased to $193,000, yet they had little visibility into the costs and/or services for the separate programs or whether they were taking advantage of volume discounts from providers. The CFO reached out to IQ Telcom to help gain control over these costs and increase visibility into their telecom expenses.
SOLUTION
Beginning with data collection of all invoices, IQ Telcom performed an analysis of services and associated costs at each location. This allowed the corporate office to see where the money was being spent and, therefore, how to budget and allocate these costs. Physical audits at key locations were performed to document hardware make, model and capacity. IQ Telcom was able to identify unnecessary lines and circuits and to re-rate several of the remaining services. IQ Telcom also created master accounts with each provider and an internal system to help capture and allocate all costs to the appropriate cost center.
RESULT
IQ Telcom reduced annual telecom spend by 40%. This allowed more money each month for client services, capital improvements, and technology upgrades within the organization. The CFO also had a "snapshot" of services at each location to hand over to the IT department as well as to the AP department for correct cost allocation. Increased visibility into costs and services and a reduction of "fixed" costs for telecom made this project self-funding with a Return of Investment in less than six months.
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