MTC’s operation in Kuwait succeeded in recovering $15 million after using an off-the-shelf RA (revenue assurance) program. MTC not only deployed an RA solution but hired an excellent RA manager, who was assigned the task of examining inefficiencies in MTC Kuwait’s back office. Under his recommendation the chief financial officer explored an RA solution and suggested a program that could help MTC recover $8 million in lost and under-reported revenue over the life of the system of about four to five years.
In fact, the program was so successful that nearly double the original estimate was recovered and the RA solution has repaid several times over its cost of $2 million, excluding hardware.
In MTC Kuwait’s case, however, the project recovered more than initially expected. Mr. Sam Deeb, Chief Financial Officer at MTC Group, said, “We kicked off the project in December 2003 because we knew that MTC, as a company aspiring to achieve global status and already a publicly traded company on the Kuwait Stock Exchange, could not afford to lose money because of inefficient back office systems and legacy processes. As such, it was one of our priorities and it proved its worth with the recovery of $15 million worth of revenues.”
That amount represents 2.5% of MTC Kuwait’s total revenue. Deeb described the exercise as “an excellent starting point to becoming a lean operator.” He added: “We will continue to improve on our processes and systems to enable MTC to become a company that can compete with top multinational organizations across the world.”
Mr. Venkatesh Jandhyala, Revenue Assurance Manager at MTC Group, said: “We carried out a two-phase project with a total investment of $2 million, not including hardware. Phase one was an extended proof of concept and phase 2 involved actual system deployment and integration. Moreover phase 1 itself identified savings several times over total project cost.”
Jandhyala said the company had chosen Connectiva’s ONEREVIEW, “which provides visibility and control over the revenue chain from the network to the customer invoice, using the principles of enterprise information integration.”
The RA program is currently maintained by MTC staff. Jandhyala added: “Our challenge is to stabilize revenue loss prevention as MTC expands its customer base and introduces new services. During the implementation phase itself, the project paid for itself several times over.”
