From the roster, Telstra’s outsourcing partners have been put on notice today as the project New looks to trim the fat from the edges of the telco giant, with the head of the program today telling investors that the end game was to slash one third of the company’s vendors. To simplify Telstra’s business processes to a btter serve customer and save costs, the project new was announced at last year’s investors and sought. The project seems to be delivering so far with the Telstra group managing director Robert Nason that the project is about halfway complete and it has given the company a $622 million productivity boost in financial year 2011. They are about 50 percent of the way through in their view, in terms of implementing the changes that they anticipated to make in the company. The implementation itself is accelerating.

With the Telecommunications Industry Ombudsman, as a result of the cost savings and the business streamlining operations implemented under Project New Telstra has experienced a 50 percent year-on-year reduction in the complaints lodged. The 6 percent increase year-on-year of the customer service calls resolves upon first contact as well as a 28 percent decrease in monthly call volumes approximately 2.1 million per month. The company also changed the reporting line of around 25,000 staff to improve efficiency over the last 12 months. While the cost cutting and streamlining measures had worked wonders for the Telstra Project New had not all been a bed streamlined roses.

It is natural that they should go back and have a look and that will be a part of the second wave of the productivity improvement, when they got such a big program and they’ve done so much restructuring and changes to the operating model. The part of the cost cutting and efficiency measures will be eliminating vendor relationships that represents a dead weight on the business. They’ve looked at their external vendors and that is quite big component of the both service improvement and the productivity changes we’re looking at over the last 12 months, they’ve reduced their total number of the vendors that service Telstra by 19 percent,. They anticipated that by the time that the project is completed, they will have to reduce the number of the vendors by about 33 percent. They are looking at a deeper, more productive, more value added relationships with the fewer suppliers to drive competitive value.

REFERENCE:

ttp://www.zdnet.com.au/vendors-to-feel-the-project-new-squeeze-339326467.htm