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Net2Phone outsourced its porting processes to Accenture in a multi-year business process outsourcing deal in 2005.With Accenture’s help, Net2Phone has reduced provisioning costs by up to 50 percent, while also gaining capabilities that are helping it power toward achieving high performance.
Net2Phone Inc. is a subsidiary of IDT Corporation, a company that provides retail domestic and international long-distance access, mainly in the United States, as well as wholesale voice and data services. Currently, Net2Phone supports more than 250,000 end-users by providing wholesale residential and business telephony services to cable operators throughout the United States and Puerto Rico. Customers include Atlantic Broadband, Bresnan, Metrocast and JET Broadband.
In today’s economic climate, companies are looking to drive immediate cost savings while also enabling long-term strategic advantage. Speed of cost reduction and immediacy of cash delivery to the bottom line must be balanced with the retention of critical business capabilities and future sources of value.
Accenture’s ongoing High Performance Business research has found that a common trait of high-performance businesses is the ability to proactively use a downturn to improve their competitive position—by prudently cutting costs while also sharpening their customer focus, driving operational excellence and carefully acquiring distinctive capabilities and assets.
In communications network operations, the selective deployment of business process outsourcing (BPO) represents an emerging distinctive capability. In the area of provisioning, network operators face significant activation costs, which often include the non-value-adding labor costs of manual provisioning. These costs can be significantly reduced by outsourcing the manual processing and activation elements.
Net2Phone sought such an advantage through improved provisioning for its cable operator customers. Cable executives recognize that voice over Internet Protocol (VoIP) order provisioning and fulfillment—known as porting—is one of the most critical bottlenecks to reaching a higher subscriber growth target and achieving additional revenues. Net2Phone had committed itself to creating an economical voice product that services the small to medium-size multi system operator (MSO) community.
To help meet its unique business requirements, Net2Phone engaged in a multiyear outsourcing engagement with Accenture in March 2005. Accenture was well positioned to provide Net2Phone with managed services for wireline number porting between local exchange carriers and provisioning of related services.
Accenture’s innovative services helped transform service order data from Net2Phone’s clients into trading partner orders that could be accepted and processed seamlessly. Specifically, Accenture provided Net2Phone with:
Most importantly, Accenture helped manage the disparate outgoing and incoming trading partner messages and helped create a simpler, more uniform process that linked back to Net2Phone’s systems and operations. Accenture Industry-specific BPO Services provided Net2Phone with order management and carrier management services that helped Net2Phone address its unique business challenges.
Accenture began supporting Net2Phone in March 2005 via a manual solution; moved to partial automation by June 2005; and by summer 2006 had moved to a fully automated solution meeting Net2Phone’s volume and solution spend requirements.
Accenture used established practices and methodologies to minimize risk and deliver porting services in 45 days, allowing Net2Phone to quickly achieve the benefits of outsourcing and provide high levels of service to existing clients while scaling up its business.
Since implementing this service, Accenture has processed more than half a million service orders, while reducing Net2Phone’s provisioning costs by 40 to 50 percent. In addition to enhancing its ability to handle increased order volume, Net2Phone has achieved other tangible benefits from using this service. These include:
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