WAN & IT Cost Optimization achieved in Healthcare Industry

Objective: Optimizing WAN to Reduce Connectivity Costs

In a high-speed, mobile life, compromise with connectivity can be disastrous for an organization. It is extremely critical for the medical and healthcare service providers, where it is literally a matter of life and death in many cases.The client, a leading medical and healthcare service provider in India with a network spread across the country, wanted to review their connectivity solution SLAs (service level agreements) and optimize their WAN (wide area network) usage.

Creating Values team did a thorough check of client’s current setup, evaluating every possible alternative technology that could be utilized to affect this change, optimize the network usage and result in a cost reduction for the client, thereby, improving the operational bottom line over a short span of time.

Problem Areas: Challenges of Distance, Availability and Increasing Costs

In spite of a technically sound IT team with mixed talent and skill sets, the challenges of distance and availability of infrastructure service providers led to a less than optimal use of the existing WAN setup. SLAs provided by technology service providers were not being implemented to the letter resulting in escalating costs and reducing performance. The following challenges were staring at the management:

  • Coordination between centers spread across the country was getting affected
  • Poor connectivity meant that the consumers were looking for alternative medical and healthcare services
  • Employee performance was getting affected
  • Cost of technology was increasing at an alarming pace, affecting the bottom line of the client

In the absence of benchmarking and strict adherence to the SLAs, the client was unable to access the growth potential of the technology employed hampering the overall efficiency across all locations.

The CIO was a business technocrat for whom the priority was to ensure a seamless, cost effective and business oriented Technology Services being offered to the business users and enabling the Organization. The CIO was looking to get an assessment done to gauge the effetciveness of today, and readiness for tomorrow.

Creating Values: Assessment and Technology Roadmap

Creating Values recognized the immediate need to optimize WAN usage in order to rationalize expenditure on technology by the client across locations. In addition to assessing the current setup for optimization, Creating Values identified alternative technologies that can replace parts of the existing setup in order to reduce the overall dissipation of spends.

It also provided alternate technology solutions and assised in designing a revamped network architecture to simplify the network complexities.

Phase I: Assessment of Current WAN Setup, Costs and SLAs

Creating Values did a thorough 360-degree assessment of client’s WAN setup and technology service provider SLAs to identify trouble points. The assessment was carried out by:

  • Pencil review of contracts to find out the potential of the current system and identify areas of improvement
  • Proof read SLAs and their adherence in the current technology setup across locations
  • Study alternate technologies that enhance performance and allow scalability for future needs
  • Identify industry best practices
  • Benchmarking data to correspond with organizational needs
  • Monitoring over a certain period of time to identify in-house areas of improvement in technology deployment and usage

Creating Values used the following tools and techniques to establish loopholes in current technology deployment and usage across locations for the client:

  • Direct observation
  • Review of contracts and SLAs provided by technology service providers
  • Consultation with persons in key positions
  • Evaluation of the systems
  • Establishing expectations of different teams and leadership
  • Monitoring of system performance across locations
  • Identifying alternatives to present technology setup based on client’s current and future needs
  • Develop work samples

Phase II: Building recommendations based on observations from Phase I

After a thorough assessment across client’s locations, Creating Values identified the avenues for optimizing WAN connectivity, thereby improving the overall efficiency and bottom line of the client’s network.

  • Evaluating the strengths of existing network
  • Identifying and using the right process-technology solution for efficient use of WAN
  • Establishing deficiencies in services of technology service providers and plugging the gaps
  • Re-negotiating with service providers to enable strict adherence of SLAs
  • Employing alternative technolgies to augment the current setup and provide for scalability in the future
  • At least 10% reduction expected in technology costs year-on-year for the client

 Results to the Client Costs

  • Based on the industry benchmarking done on behalf of the client, CREATING VALUES was able to demostrate a busines case for reducing at least 33% of its Network Connectivity costs, which was running into Crores. This was a huge savings being visualized to the client.
  • It was advised to the Client to go beyond settling at a reduction of 10% in annual connectivity costs, aim for a conservative 25% and try achieving anything more than that in order to achieve a decent 30-335 reduction.
  • A pointed actionables were also provided in order to asisst the client to achieve this high % reduction.
  • For better results, Creating Values recommended bringing in third party negotiators for the client’s benefits during SLA negotiations with service providers
  • An RF partner service provider was recommended in the long run since majority of the client’s links are based on RF technology

Contractual

  • Negotiate and enforce contracts over and above the SLAs and POs

Others

  • Establish a carrier-class network management system (NMS) to address future scalability. This was visualized to enable the client to do a scheduled capacity planning rather than ad-hoc bandwidth increases.
  • Conduct a Network Security Audit to ensure zero-pilferage of data

Brief on Creating Values

Creating Values is a diagnostics and advisory consulting firm that enables businesses to have an effective IT and HR landscape.Awarded the “Fastest Growing Knowledge Based Start-Up in North India”, Creating Values partners with organizations to enable transformative changes, empowering ideas through its domain expert strategic advisory services to bring about action, reduce overall operating costs and increase business growth.

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