Their cost program helps to balance the cost inflation and facilitate them to increase the revenue  (Vodafone Limited, 2010).
Vodafone had implemented ‘Siemens top’ plan to employ cost optimisation and reduce the cost of various operations. This plan had successfully reduced cost by 10% per year. Through this plan, Vodafone had involved 500 procedures and freed over 4000 servers and 1000 Tera Byte storage space. Their maintenance cost was saved by 10% and consolidation services cost was saved by 25% (Siemens IT Solutions and Services GmbH, 2011).
In the year 2007, Vodafone had selected Sony Ericsson to supply and allocate the spare equipments for their network service in European countries such as Portugal, Spain and Germany. According to the deal with Sony Ericsson, the supply of spare parts included 2G, 3G and transmissions tools in Europe. This is a part of cost reduction strategy of Vodafone which could enable the company to minimise the average cost of management procedure of supply and develop the service level. Through this agreement, Vodafone can harmonise the spare component supply, provide better cost transparency for the provision of services and eliminate the extra investment for spare component inventory. This agreement is beneficial for Vodafone in the sense that it can save the cost by channelizing purchases in all countries by a single supplier (Vodafone Limited, 2007). ...Show more