by J David Childs

Created on: February 12, 2009

Executive Summary

While management struggles to reduce costs in constricting markets, many expenses are constant because of contractual arrangements. This includes telecommunications maintenance agreements. The telecommunications network (voice and data) is one of the core strategic assets of any enterprise. It is an imperative that the telecommunications network is efficiently utilized to get the most value, as well as effectively maintained to meet the critical needs of the business.

Maintenance agreements are typically two or three year agreements. Where your firm is with regard to the term of your maintenance agreement will drive the consideration of any material changes to the services provided by your telecommunications maintenance provider, and improving the value of the telecommunications expense monies committed.

Prior to any negotiations of changes to the status quo, one must assess if the maintenance agreement has specific and quantifiable performance measures. As with any other strategic asset, the telecommunications network must be supported by very specific and clear performance objectives. These objectives range from the technical aspects of network availability to delivering on maintenance and service order requests. Without such specific measures, your maintenance provider has little to no incentive to care for your telecommunications requirements as a strategic element of your business.

Should you find that your agreement is meeting (strategic) expectations, congratulations! You may want to read on, however, to ensure that you have asked enough probing questions and they have been answered by measurable objectives clearly written in the telecommunications maintenance agreement.

If your investigation reveals there are few or no tangible measures and fewer yet with material recourse, you may want to have a conversation with your maintenance provider. That conversation may include renegotiating the maintenance agreement to add performance objectives or establish performance criteria that will be measured and will be considered at each annual performance evaluation. Either is contingent upon where you are in the term of the agreement. No matter the remaining life of the existing term, your maintenance provider is likely to want to maintain your business. A service provider worth having is likely to appreciate negotiated clear measures that are attainable and of which enhance the business relationship.

Telecommunications - Strategic assets

The telecommunications

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