Challenge
For the largest workers’ compensation insurer in its state, rising telecom expenses and poor carrier support had become a growing concern. Despite the company’s size and reach, it was paying for services that were unused, redundant, or mismanaged.
Even worse, carrier support was inadequate – leading to delayed resolutions, unresolved service issues, and operational inefficiencies that affected internal teams and client service.
Key challenges included:
- Escalating telecom costs misaligned with company scale
- Inadequate carrier support and unresolved service issues
- Lack of billing transparency, with hidden fees and incorrect charges
With over 72,000 business owners served and 1.5 million workers covered statewide, efficient telecom operations were critical to supporting their mission and daily operations.
Client Overview
The client holds 42% of its state’s workers’ compensation market, trusted by tens of thousands of business owners to protect over a million employees on the job.
With such an extensive footprint, even minor telecom inefficiencies translated into significant financial waste.
- Telecom Spend Before Audit: $1,122,864 annually
- Industry: Workers’ Compensation Insurance
- Scale: 1.5 million workers covered, 72,000 businesses served
Solution
The company partnered with Digital Direction to perform a comprehensive telecom audit aimed at uncovering hidden costs, correcting billing errors, and streamlining operations.
The audit evaluated every telecom bill, contract, and service to identify savings opportunities and create a roadmap for ongoing cost control.
Digital Direction’s work focused on improving financial visibility, negotiating better terms, and establishing a foundation for more efficient telecom management going forward.
Audit Steps
- Comprehensive Audit: Line-by-line review of all telecom bills, contracts, and services.
- Billing Dispute Resolution: Identification and correction of billing errors, resulting in substantial one-time credits.
- Contract Negotiations: Renegotiation of carrier contracts to secure more favorable rates and terms.
- Service Optimization: Elimination of unused and redundant services to align spend with actual needs.
By scrutinizing every invoice and contract, Digital Direction uncovered hidden costs that had gone unnoticed for years.
Implementation
To ensure a seamless rollout, Digital Direction collaborated closely with the client’s internal teams throughout the engagement.
Process Overview:
- Data Collection and Analysis: Gathered all telecom bills, contracts, and inventories for detailed review.
- Initial Findings: Quick-win savings identified early and implemented immediately.
- Billing Corrections: Carrier discrepancies corrected and one-time credits secured.
- Ongoing Monitoring: As the client transitions into Digital Direction’s managed services, telecom spend continues to be tracked to identify new savings and efficiency opportunities.
The audit also revealed configuration changes that improved service quality and reduced downtime across the network.
Results
The audit produced immediate and measurable financial impact:
| Metric | Value |
|---|---|
| Annual Telecom Spend (Before Audit) | $1,122,864 |
| Annual Savings | $702,942 (62% reduction) |
| One-Time Credits | $42,830 |
Through Digital Direction’s audit, the client reduced telecom costs by 62%, freeing over $700,000 annually to reinvest in critical business initiatives.
The Bottom Line
The client, a market leader in workers’ compensation insurance, was facing escalating telecom costs and poor carrier support that hindered performance and transparency.
With a full audit from Digital Direction, the company was able to identify and eliminate unnecessary telecom spend, achieving a 62% reduction in annual costs and securing $42,830 in one-time credits. As the partnership continues, Digital Direction’s managed services will provide ongoing oversight to ensure billing accuracy, continuous savings, and more efficient telecom operations.
