Information Technology Benchmark (ITB)

Data-Collection Instruction Guide

Enterprise Telecommunications
(Network Voice and Voice Technology)

Version 2.6

KPMG LLP
99 High Street
Boston, MA 02110

(617) 988-1000
(617) 988-1860 FAX

Reproduction of this publication in

any form without prior written permission is forbidden. KPMG LLP
 General Definitions

Enterprise Telecommunications Consensus Cost Model

Network Voice Voice Technology

Virtual Networks
Microwave - Usage
ETN
Equipment - Value-Added
Satellite Private
Equipment Network Services
Local PBX
Local Usage
Voice Mail

Video Conference

PBX Network Switch Central Communications

Leased
Tandem Switches Office Touch - Extensions
Lines
Multiplexors Lines
Channel
Banks

Least-Cost Routing Modems

Automatic Call Distribution CSU/DSU Centrex
Communications FAX Service
Software Enhanced Features Media
Access
Personnel
Operations Tactical Planning Change Management Management
Help Desk Strategic Planning Vendors Administration

This diagram depicts the means of access to your virtual and private voice networks and various hardware
elements associated with the networks and premise-based services.

Enterprise Telecommunications Workbook

The workbook is comprised of two spreadsheets: Network Voice and Voice Technology. In the
first, Network Voice, we collect information pertaining to workload, cost and personnel of your
long distance voice network. In the second, Voice Technology, we collect information pertaining
to workload, cost and personnel of your PBX and / or Centrex services.

Version 2.6 1 ITB/ET

 Network Voice

The Network Voice work sheet will define the workload, cost and personnel components of this analysis. This will
be used to select the comparison group and will be balanced against your costs to determine your overall
efficiency metrics. Identify the currency for the costs you are entering on the Currency line at the top of the
spreadsheet.

1. Workload Definition – Number of Sites (Row 1; Columns A and C)

Report the number of sites connected to the long distance public virtual network via switched or
dedicated access lines in Row 1, Column A and number of sites connected to the private
voice network in Row 1, Column C. A site is defined as a single organization facility
located on a continuous piece of property that is not crossed by a public thoroughfare.

A public virtual network service site is defined as any site utilizing a publicly available long
distance network, for example, Public Switched Telephone Network (PSTN) or software-
defined networks (SDN, V-net, VPN, etc.). They can be connected via dedicated or
switched access facilities provided by the long distance carrier, local exchange carrier, PTT
or other supplier. Dedicated access usually constitutes T1, E1, or discrete analog lines used
exclusively for connectivity to the long distance carrier point of presence (POP). If a
dedicated site also has switched access to another carrier (for example, for dial backup),
count it only as a dedicated site. Switched access usually constitutes central office trunks
used for local and long distance calling. For long distance services, these sites have switched
access to your public virtual network service.

Private network sites are locations connected to your privately owned and maintained internal
network. Typically, this is accomplished with point-to-point intermachine trunks (backbone)
and tie lines for network access. [If other private facilities, e.g., OPXes (off-premise
extensions) compose a significant portion of cost and usage, include them.]

If a site is connected to both the private and public network services, count it as a private
network site.

If you are excluding sites for which you are not supplying cost and / or usage data, please advise
your service analyst.

2. Workload Definition – Number of Minutes per Month (Rows 2 and 3; Columns A and
C)

Report the total number of outbound minutes for the virtual voice network in Row 2, Column A
and private voice network in Row 2, Column C. Report the total number of inbound minutes
in Row 3, Column A. For the virtual dedicated or switched network, total the minutes for
on-net to on-net, on-net to off-net, off-net to on-net and off-net to off-net calls.

Outbound virtual network minutes are the monthly outbound minutes for the virtual long
distance network. It includes the total of all domestic outbound, long distance minutes from

Version 2.6 2 ITB/ET

 Network Voice, continued
all of the organization’s switched and dedicated access sites as described above. Include all
outbound domestic calling that is billed by the organization’s selected long distance
provider(s). Exclude credit card, cellular and international calling.

Inbound virtual network minutes are the monthly inbound minutes received on the
organization’s “800 and 888” facilities and billed by the organization’s selected long
distance provider(s). Include calling into call centers, help desks and all other facilities that
handle inbound calls.

Outbound private network minutes are the monthly outbound minutes generated by all the
organizational locations that are connected to the private network. Include all outbound
location-to-location calling. Also include all minutes that originate on the private network
and terminate at a non-network location. This is commonly referred to as “tail end hop off”
(TEHO).

3. Cost Definition – General

KPMG LLP uses fully burdened costs when defining costs for the consensus cost models.
Include the lease, maintenance and depreciation costs of all hardware, software or shared
hardware and software used by the network voice staff for the analysis time period. In all
cost categories, include all applicable taxes (federal, state and local). Include value-added
taxes (VAT); only exclude VAT when it is recovered or refunded to the organization. The
depreciation schedule used and the tax rates borne by your organization are reported in the
ITB Project Definition and Information Questionnaire.

Those network facilities and hardware shared with other services such as the data networks will
need to be apportioned among these services. For purposes of the analysis, cost is
determined by calculating the percentage of the access facility or hardware used for voice
services and multiplying this by the overall cost. Where there is spare capacity, the
associated cost is allocated proportionately to each service.

4. Cost Definition – Hardware (Row 4; Columns A and C)

Report the annual monetary expense related to hardware for the virtual voice network in Row 4,
Column A and for the private voice network in Row 4, Column C. Include voice grade
channel provisioning and switching hardware.

Include voice compression equipment used to derive multiple voice grade equivalent channels
from a single voice grade 64kbps (DS-0) channel. Also include multiplexor equipment used
to derive multiple channels of varying bandwidth from a single channel. This also includes
channel bank equipment used for termination of a T1/E1 facility and derivation of individual
voice grade channels.

In addition, include the CSU/DSU equipment used for termination of a T1/E1 circuit at the
network site. This equipment may be included in the long distance carrier, local exchange
carrier or PTT charges for a circuit. If so, do not include in this section. If the equipment is
leased or purchased independent of the circuit, include its full cost for the analysis period. If

Version 2.6 3 ITB/ET

 Network Voice, continued
it is used to terminate circuits also used for data, then the cost should be split as described
above.

Include tandem switch equipment located at a backbone site and used exclusively for movement
of voice network traffic to or from other network sites. Since tandem (switch) equipment is
designated exclusively for voice network switching, all costs are applicable to the voice
network services part of this work sheet.

PBX costs may need to be apportioned between network and site elements when the PBX is used
as a tandem or access switch for the voice network. This can be done in one of two ways.
The first method is to specify the number of trunk cards designated for connection to
network circuits. In this case, multiply the number of cards by the cost per card in order to
determine the total cost to be allocated to the voice network. The second approach is to
measure the proportions of total traffic carried by the PBX over a representative period for
extension-extension, extension-trunk and trunk-trunk calls. Multiply the total annual cost of
the PBX by the percentage of extension-trunk and trunk-trunk calls.

If least cost routing software is employed, include its cost in the software total.

5. Cost Definition – Software (Row 5; Columns A and C)

Report the annual monetary expense related to software for the virtual voice network in Row 5,
Column A and for the private voice network in Row 5, Column C. Include software for the
voice grade channel provisioning and switching hardware described above. Allocate
software costs for the PBX and CSU/DSU in the same manner described above.

6. Cost Definition – Circuits – Network Access (Row 6; Columns A and C)

Report the annual monetary expense related to network circuit access for the virtual voice
network in Row 6, Column A and for the private voice network in Row 6, Column C.
Network access is provided through a combination of transmission technologies (hardware)
and circuits.

For the virtual voice network, include only dedicated access costs. Switched access costs are
excluded from this analysis. If you employ private bypass for access to your long distance
service provider, the costs should be included. Include the costs for value-added services
such as call routing and call management.

For the private voice network, include those circuits within the organization that link its sites /
locations which are leased from long distance carriers, local exchange carriers or PTTs,
connecting between its switching systems, i.e., PABXes and key systems. Include any costs
for value-added services such as call routing and call management.

7. Cost Definition – Circuits – Usage (Row 7; Columns A and C)

Report the annual monetary expense related to network circuit usage for the virtual voice
network in Row 7, Column A and private voice network in Row 7, Column C. It is less

Version 2.6 4 ITB/ET

 Network Voice, continued
common to have circuit usage cost for the private network except in the case of “tail end hop
off.”

Include the usage costs from your monthly billing for all minutes reported in rows 2 and 3,
Column A. Exclude basic local services provided by the local exchange carriers or PTTs.

Include the usage costs associated with optional billing operations and value-added services such
as call routing and call management. If your organization subscribes to fraud protection,
include the costs in this category.

8. Cost Definition – Occupancy (Row 8; Columns A and C)

Report the annual monetary expense related to occupancy for the virtual voice network in Row
8, Column A and for the private voice network in Row 8, Column C. Occupancy costs
should include fully burdened costs for the facility. Some examples would include office
space, furniture, electricity, maintenance, property taxes, security, office supplies, etc.

9. Personnel Definition – General

KPMG LLP uses the Full Time Equivalent (FTE) concept in defining staff resources. Do not
count the physical staff but count the logical staff by looking at the functions that the
physical staff perform and for which they are responsible. FTEs should be measured in
calendar time, that is, if an individual works full time on an assignment for a full year, that is
one FTE. You would not subtract vacation time, sick days, administration time, etc. If your
labor-tracking system shows, for example, 220 days actually worked, that represents one
FTE in your organization. The conversion factor you use to go from hours or days into
FTEs depends upon the amount of overhead time, how you record overtime, and the way
you enter data into your tracking system. Do not count any one physical person as more than
one logical person (due to overtime, etc.). Correspondingly, you may count less than one
logical person for a physical person when not all of that individual’s time falls within the
scope of this analysis.

Report all staffing levels within the organization from managers and project leaders to daily
operations personnel. Report summarized data for all categories to show the average staff
level, adjusting for timing. This is done best by totaling the person-months on staff during the
year and then dividing by 12.

Report the actual monetary expense related to in-house staff, contractors and consultants utilized
during the analysis time period for all of the staff functions reported.

For in-house staff, in addition to salary include bonuses and paid holidays and vacation. Also
include benefits such as costs for medical / dental coverage, life and accident insurance,
retirement plans, stock plans, disability, social security, unemployment compensation,
dependent care, tuition reimbursement and employee assistance programs (physical exams,
exercise programs and similar costs). In all cost categories, include all applicable taxes
(federal, state and local). Include value-added taxes (VAT); only exclude VAT when it is
recovered or refunded to the organization.

Version 2.6 5 ITB/ET

 Network Voice, continued

Also include “other” employee costs such as travel and training.

Do not include the costs related to human resource department staff allocations, early retirement
incentive bonuses, internal "cross-charges" for corporate overhead such as for the chairman's
salary or the human resources department.

For contractors and consultants, include all compensation that was paid directly to the individual
or agency.

10. Personnel Definition – Management and Administration (Row 9; Columns A and C for
FTE Count and B and D for FTE Cost)

Report the total FTEs in Row 9, columns A and C and the annual monetary expense for
management and administration for the virtual and private voice networks in Row 9,
columns B and D. This is the staff responsible for personnel and all or part of the
telecommunications function. Include time spent managing vendors and intra-organization
relations as they affect systems and services. Include staff responsible for the budget,
acquisition and chargeback related to the services and systems provided by the department.
Also include tracking of assets / inventory and any support services, i.e., secretarial, clerical,
etc.

11. Personnel Definition – Planning (Row 10; Columns A and C for FTE Count and B and
D for FTE Cost)

Report the total FTEs in Row 10, columns A and C and the annual monetary expense for
strategic and tactical planning for the virtual and private voice networks in Row 10, columns
B and D. This is the staff responsible for reviewing, analyzing and optimizing existing
systems and services. They forecast the impact of new services and measure the impact once
the change is implemented. They are also responsible for researching, analyzing and
recommending new technologies and services to be integrated into the existing systems and
services. Also forecast the needs of the enterprise and select the appropriate platform(s) for
meeting future requirements.

12. Personnel Definition – Operations (Row 11; Columns A and C for FTE Count and B
and D for FTE Cost)

Report the total FTEs in Row 11, columns A and C and the annual monetary for operations for
the virtual and private voice networks in Row 11, columns B and D. This is the staff
responsible for maintenance activities, monitoring of the day-to-day overall efficiency and
the continuous performance evaluation of installed systems and services. Includes
engineering functions, as appropriate, as well as first-, second- and third-tier “problem /
trouble” resolution.

13. Personnel Definition – Outsourcer (Row 12; Columns B and D for Cost)

Version 2.6 6 ITB/ET

 Network Voice, continued
Report the annual monetary expense for outsourced functions for the virtual and private voice
networks in Row 12, columns B and D. This is supplemental staff not managed on a day-to-
day basis by the organization in which control of individual function(s) has been given to a
third party.

Version 2.6 7 ITB/ET

 Voice Technology

The Voice Technology work sheet will define the workload, cost and personnel components of
your analysis. This will be used to select the comparison group and will be balanced against
your costs to determine your overall efficiency metrics. Identify the currency for the costs you
are entering on the Currency line at the top of the spreadsheet.

1. Workload Definition – Number of Sites (Row 1; Columns A, C and E)

Report the number of PBX sites in Row 1, Column A; Centrex sites in Row 1, Column C and
other (key / hybrid) sites in Row 1, Column E. A site is defined as a single organization
facility located on a continuous piece of property that is not crossed by a public thoroughfare
and has its own dedicated PBX, Centrex or key system service. The overview analysis looks
at an aggregation of as many sites as you select. Report all information in this questionnaire
based upon the aggregation of your selected sites.

2. Workload Definition – Number of Extensions (Row 2; Columns A, C and E)

Report the total number for all sites of working PBX extensions in Row 2, Column A; Centrex
extensions in Row 2, Column C and other extensions in Row 2, Column E. Report
extensions only for sites reported in Row 1.

3. Workload Definition – Number of Changes (Row 3; Columns A, C and E)

Report the total number of moves, adds and changes for PBX sites per month in Row 3, Column
A; for Centrex sites per month in Row 3, Column C and for all other sites per month in Row
3, Column E. Report changes only for sites reported in Row 1.

4. Cost Definition – General

KPMG LLP uses fully burdened costs when defining costs for the consensus models. Include the
lease, maintenance and depreciation costs of all hardware, software or shared hardware and
software used by the staff for the analysis time period. In all cost categories, include all
applicable taxes (federal, state and local). Include value-added taxes (VAT); only exclude
VAT when it is recovered or refunded to the organization. All costs are reported in
thousands.

The depreciation schedule used and the tax rates borne by your organization are reported in the
ITB Project Definition and Information Questionnaire.

5. Cost Definition – Hardware (Row 4; Columns A, C and E)

Report the annual monetary expense related to hardware for the PBX sites in Row 4, Column A;
Centrex sites in Row 4, Column C and other sites in Row 4, Column E. Include Automatic
Call Distributor (ACD) and voice mail costs, as appropriate.

Version 2.6 8 ITB/ET

 Voice Technology, continued
1. Cost Definition – Software (Row 5; Columns A, C and E)
0
0Report the annual monetary expense related to software for the PBX sites in Row 5, Column A;
Centrex sites in Row 5, Column C and other sites in Row 5, Column E. Include ACD and voice
mail costs, as appropriate.
0
1. Cost Definition – Circuits (Row 6; Columns A and E)
0
0Report the annual monetary expense related to local trunks (e.g., DID, DOD, COT, etc.)
including local usage for the PBX sites in Row 6, Column A and local service for other sites in
Row 6, Column E.
0
1. Cost Definition – Occupancy (Row 7; Columns A, C and E)
0
0Report the annual monetary expense related to occupancy for the virtual voice network in Row
7, Column A; Centrex sites in Row 7, Column C and other sites in Row 7, Column E.
Occupancy costs should include fully burdened costs for the facility. Some examples would
include office space, furniture, electricity, maintenance, property taxes, security, office supplies,
etc.
0
1. Personnel Definition – General
0
0KPMG LLP uses the Full Time Equivalent (FTE) concept in defining staff resources. Do not
count the physical staff but count the logical staff by looking at the functions that the physical
staff perform and for which they are responsible. FTEs should be measured in calendar time,
that is, if an individual works full-time on an assignment for a full year, that is one FTE. You
would not subtract vacation time, sick days, administration time, etc. If your labor tracking
system shows, for example, 220 days actually worked, that represents one FTE in your
organization. The conversion factor you use to go from hours or days into FTEs depends upon
the amount of overhead time, how you record overtime, and the way you enter data into your
tracking system. Do not count any one physical person as more than one logical person (due to
overtime, etc.) Correspondingly, you may count less than one logical person for a physical
person when not all of that individual’s time falls within the scope of this analysis.
0
0Report all staffing levels within the organization from managers and project leaders to daily
operations personnel. Report summarized data for all categories to show the average staff level,
adjusting for timing. This is done best by totaling the person-months on staff during the year and
then dividing by 12.
0
0Report the actual monetary expense related to in-house staff, contractors and consultants
utilized during the analysis time period for all of the staff functions reported.
0
0For in-house staff, in addition to salary include bonuses and paid holidays and vacation. Also
include benefits such as costs for medical / dental coverage, life and accident insurance,
retirement plans, stock plans, disability, social security, unemployment compensation, dependent
care, tuition reimbursement and employee assistance programs (physical exams, exercise
programs and similar costs). In all cost categories, include all applicable taxes (federal, state and

Version 2.6 9 ITB/ET

 Voice Technology, continued
local). Include value-added taxes (VAT); only exclude VAT when it is recovered or refunded to
the organization.
0
0Also include “other” employee costs such as travel and training.
0
0Do not include the costs related to human resource department staff allocations, early
retirement incentive bonuses, internal "cross-charges" for corporate overhead such as for the
chairman's salary or the human resources department.
0
0For contractors and consultants, include all compensation that was paid directly to the
individual or agency.
0
1. Personnel Definition – Management and Administration (Row 8; Columns A, C and E
for FTE Count and B, D and F for FTE Cost)
0
0Report the total FTEs in Row 8, columns A, C and E and the annual monetary expense for
management and administration for the PBX, Centrex and other voice sites in Row 8, columns
B, D and E. Include staff only at the centralized or corporate level, i.e., those individuals for
which the span of their responsibility is all sites, enterprise wide. Exclude site-specific staff.
Include staff responsible for personnel and all or part of the telecommunications function. Also
include time spent managing vendors and intra-organization relations as they affect systems and
services. In addition, include staff responsible for the budget, acquisition and chargeback related
to the services and systems provided by the department. Tracking of assets / inventory and any
support services, i.e., secretarial, clerical, etc., would be included herein.
0
1. Personnel Definition – Planning (Row 9; Columns A, C and E for FTE Count and B, D
and F for FTE Cost)
0
0Report the total FTEs in Row 9, columns A, C and E and the annual monetary expense for
strategic and tactical planning for the PBX, Centrex and other voice sites in Row 9, columns B,
D and E. Include staff only at the centralized or corporate level, i.e., those individuals in which
the span of their responsibility is all sites, enterprise wide. Exclude site-specific staff. This is
the staff responsible for reviewing, analyzing and optimizing existing systems and services.
They forecast the impact of new services and measure the impact once the change is
implemented. They are responsible for researching, analyzing and recommending new
technologies and services to be integrated into the existing systems and services. They forecast
the needs of the enterprise and select the appropriate platform(s) for meeting future
requirements.
0
1. Personnel Definition – Operations (Row 10; Columns A, C and E for FTE Count and
B, D and F for FTE Cost)
0
0Report the total FTEs in Row 10, columns A, C and E and the annual monetary expense for
operations for the PBX, Centrex and other voice sites in Row 10, columns B, D and E. Include
staff only at the selected sites.
0

Version 2.6 10 ITB/ET

 Voice Technology, continued
0Included the staff responsible for maintenance activities, monitoring of the day-to-day overall
efficiency and the continuous performance evaluation of installed systems and services. This
includes engineering functions, as appropriate, as well as first-, second- and third-tier “problem /
trouble” resolution. Also include the staff responsible for support of and development of
computer telephone interface (CTI). applications. In addition, include staff responsible for all
processes associated with adding, deleting and changing system / service components. Include
all steps of the process: receipt of request; service order, procurement, scheduling; tracking,
physical moves, adds and changes; et al. Large-scale projects requiring project management are
included herein. Also include the staff responsible for all activities associated with training,
adding and deleting users as well as maintaining the voice messaging system.
0
1. Personnel Definition – Contractors (Row 11; Columns A, C and E for FTE Count and
B, D and F for FTE Cost)
0
0Report the total FTEs in Row 11, columns A, C and E and the annual monetary expense for
contractors for the PBX, Centrex and other voice sites in Row 11, columns B, D and E. This
encompasses externally provided personnel for moves, adds and changes; planning; operations
or other functions. The vendor-contracted category typically comprises those with a long-term
commitment along with a subscription for contract or purchase of equipment. The external
service-contracted category typically includes a local contractor(s) providing service on an ad
hoc, service order or project basis.
0
1. Personnel Definition – Outsourcer (Row 13; Columns B, D and F for Cost)

Report the annual monetary expense for outsourced functions for the PBX, Centrex and other
voice sites in Row 12, columns B, D and F. This is supplemental staff not managed on a
day-to-day basis by the organization in which control of individual function(s) has been
given to a third party.

Version 2.6 11 ITB/ET