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The Internal Revenue Service

 Overview of the Challenge

The Internal Revenue Service (IRS) was challenged with improving the operational costs of its communications budget while replacing its embedded base of legacy analog (TDM) telephone technology. At the time of the evaluation, the TDM technology (PBX and key systems) included 14 different manufacturers of telephone equipment, each having at least one installation among the more than 750 IRS locations. After considerable evaluation of IP telephony products, the IRS desired to reduce this field of 14 to two leaders in the IP telephony industry: Cisco and Avaya.

Seeking a comprehensive financial evaluation of the benefits of migrating from TDM to VoIP technology, the IRS hired AT&T Government Solutions to provide a Total Cost of Ownership (TCO) study and a Return on Investment (ROI) study of the government agency’s intended purchase of Cisco and Avaya IPPBX technology.

AT&T Government Solutions retained Legacy Solutions as a trusted subcontractor to provide the comprehensive financial review requested by this Government agency.

The TCO ROI review was to evaluate the cost configurations to service 10 different IRS administrative site types, comprising hundreds of locations, and the nationwide call center operations in Atlanta.

Objectives

The results of the study were to be presented in person and via teleconference to the CIO of the IRS, his staff, and representatives of the U.S. Department of the Treasury.

The VoIP financial feasibility study was exactly what we required to satisfy the Treasury departments requirement to invest in our network infrastructure.  We were very satisfied with the thoroughness, objectivity supplied by Legacy Solutions. 
Frank K.,  CIO IRS

Legacy Solutions was to remain at arm’s length to any vested sales entity that might benefit from the outcome of the financial evaluation.

The project portfolio analyzed the relative performance of the individual proposed projects, comparing costs, benefits, Risk Adjusted ROI (RAROI), Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Periods for the individual projects selected.

Applying Legacy Solutions’ Process and Knowledge

Legacy created a questionnaire to establish a baseline business case, and identified the stake holders within each of the affected departments, coordinated in-person meetings where appropriate, and also conducted phone interviews.

We evaluated the potential financial benefits between deploying VoIP versus Stand Alone IP Telephony (IPT). We prepared a sensitivity evaluation, comparing the financial returns from a stand-alone solution at the administrative locations in aggregate with a single or regional solution that was VoIP enabled. We added a third scenario and compared a VoIP solution that was hosted by a service provider. We then modified the ROI tool profile to customize it specifically for a call center environment.

Outcome

In the final report we included insights into leading topics of current concern in the industry regarding security and emerging trends. We also described common risks and suggested possible actions to address any concerns, identified some barriers that could halt or stall the effort, and provided some suggestions on how risks could be mitigated.

The outcome of the effort provided the financial cost benefits of VoIP by site type and application. The ROI and feasibility study was then reviewed by the financial officers of the Treasury, who deemed the financial investment in VoIP was justified.

Legacy Solutions can find the savings hidden in your telecom costs. Our deep analysis results in a significant boost to your bottom line.

Call us at 773-556-4066, or send us an email at mms@legacy-solutions.net to speak to one of our professionals and find out how we can help.

At Legacy Solutions our philosophy is simple: benchmark a new standard for each client with each engagement.

Legacy Solutions   Chicago, IL  773-556-4066  mms@legacy-solutions.net

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