Choosing a telecom consultant

Do some legwork to avoid getting burned by the consulting company you keep.

From negotiating the next telecom contract to selecting the new VoIP platform, many IT executives turn to outside consultants for help. Not every engagement is successful, though many of the problems that occur can be avoided if more time is spent choosing and managing consultants.

Whether you're considering using a telecom consultant with little experience or a veteran firm, what follows are some guidelines to getting the services you need.

The title of consultant is used somewhat generically in the industry, so know what type you're seeking. The biggest risk is bringing in someone who acts as a representative for a carrier or hardware provider when you want an unbiased professional working solely in the best interest of your business. This poses a conflict of interest between the consultant getting the best deal on your behalf and earning the highest commission.

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From negotiating the next telecom contract to selecting the new VoIP platform, many IT executives turn to outside consultants for help. Not every engagement is successful, though many of the problems that occur can be avoided if more time is spent choosing and managing consultants.

Whether you're considering using a telecom consultant with little experience or a veteran firm, what follows are some guidelines to getting the services you need.

The title of consultant is used somewhat generically in the industry, so know what type you're seeking. The biggest risk is bringing in someone who acts as a representative for a carrier or hardware provider when you want an unbiased professional working solely in the best interest of your business. This poses a conflict of interest between the consultant getting the best deal on your behalf and earning the highest commission.

There are three types of consultants in the telecom industry: captive, biased and unbiased.

A captive consultant is one who usually recommends or works with one "preferred" vendor for client projects. For example, IBM has a global alliance with AT&T and generally quotes AT&T network services on projects. Another potential concern is that IT consulting firms moving into telephony projects also act as Cisco authorized resellers.

A caution sign should light up if you hear a consulting firm announce a joint marketing or business relationship with a vendor or carrier. Peruse the consultancy's Web site and press releases to see if there are arrangements that could affect the consultant's ability to be independent.

A biased consultant is one who generally steers the client to a handful of vendors or carriers with whom the consultant has a business relationship. Not surprisingly, these consultants often factor the best commission rate for the deal into their selection methodology. A warning bell should go off anytime you hear phases such as, "we get paid by the carriers" or "our consulting is free to you." When a vendor or carrier Web site lists authorized consultants or marketing partners, this is a tip-off that the consultant has a biased agenda.

Unbiased consultants don't have financial relationships with any vendor or conflicts of interest that affect their recommendations. If you want an independent consultant who will work strictly in the best interest of your business, build clauses pertaining to conflicts of interest and ethics into the contract. Organizations such as the Society of Telecommunications Consultants and the Institute of Management Consultants can be good starting points for finding unbiased consultants.

All three types of telecom consultants have a role in the marketplace. Some IT executives use a captive or biased consultant because they feel someone with a vested interest will work harder to make sure customers remain satisfied with a product or service. As carrier support staffs get smaller, having another knowledgeable person in the fight with you can be valuable. At other times, certain projects call for an unbiased resource.