Telecom Expense Management (TEM) is a term used to define an
approach to managing all telecommunication service expenses such
as voice, data and wireless with a combination of software tools
and manual auditing. In managing all these services and related
processes, its goal is to minimize costs and maximize process
efficiency.
For a small company, it can be as simple as checking over your
phone bill every month to make sure you aren't billed for
services you don't want. For larger companies, it is a more
formal program to optimize spending on telecom services. Most of
the attention goes to bill auditing and getting refunds for
billing errors, but an effective TEM program can do more than
that.
A Little History
The cost of voice and data communications is dropping. One
casualty of this price plummet is that you no longer have
experienced account teams who know your account and are your
single point of contact. The new breed of account representatives
there to serve you is inexperienced with your telecom needs and
is more sales-oriented than needs-oriented.
For many businesses the overall telecommunications expense is
growing. Workers are more mobile and the amount of communications
between companies and their employees, including the huge volume
of information they exchange, has been growing as well. Email,
Internet, PDAs, ecommerce and our increasing tele-commuting
workforce all lead to an increased demand for instant and
continuous exchange of information using many kinds of telecom
devices. The increased complexity of devices and services and the
lack of transparency in carrier charging models have led to
confusion and a need for a way to manage and control telecom
costs.
In today's business landscape, many companies are downsizing
support staff, carriers are providing less support, and
communication in general is becoming larger and more complex. Out
of all this confusion, Telecommunications Expense Management was
born. TEM provides a structured and professional way to manage
the telecom spending of a company, no matter how large or small.
This management can be in the form of software used by a manager
or an outside telecom expert.
What Are the Problems?
There are quite a few. These include but are not limited to:
Using multiple carriers for different services that use
different invoice formats. This makes it difficult to match and
allocate costs effectively;
Not having a complete inventory of the company's assets
including wireless devices, headsets, hardware, computer
networks, etc.;
Difficulty in being able to apportion telecommunications costs
to divisions, teams or departments with any accuracy;
Not having the company resources to manually audit each
invoice. Between 7-12% of bills are in error. For large
companies, this is a substantial amount of money they could be
losing every month; and
Not understanding costs. You can't control the cost of
something when you don't understand how it's billed or what
you're getting for your money.
What are the Benefits?
Managing telecom services is complex and requires constant
attention. A qualified telecom expert can not only perform
systematic audits but can also alert the company to new
cost-saving options. Software programs can allow companies to
eliminate waste and optimize resources.
Both software and outside experts can help you to: reduce time
through systematized processes; reduce costs through error
identification; reduce risks through better reporting options;
and increase control and thereby accountability.
Software will help the Telecom Manager's knowledge and
understanding of the products, services and costs for his
company's telecom spending. An outside expert can handle
disputes with carriers and get price quotes for new services.
They can also restructure your agreements and contracts with
current providers and find less expensive providers.
A solid TEM platform will provide a centralized solution for
inventory control and procurement, contract compliance, budget
and spending tracking, and invoice processing. Proactive systems
can alert you to policy breaches and contract compliances.
Large companies are the prime candidates for Telecom Expense
Management. However, small and mid-size companies that need to
organize and monitor their telecom spending would benefit as
well.
For most small to mid-size companies telecom spending is the
responsibility of an IT person, an office manager, an accountant
or a combination of all three. For these types of organizations,
the benefit of a TEM solution is based on labor saving
efficiencies through automation. This benefits both telecom and
financial sides of the company by providing a way for them both
to monitor, control and report on company telecom.
Considering the importance of telecommunications in the operation
of your daily business, Telecom Expense Management is a critical
business strategy. Your company needs to not only track its
spending, but also to maximize its telecom resources. TEM lets
you make informed decisions rather than educated guesses.
Nermine Shaker has generated millions of dollars worth of savings
for her clients. She is a Partner at THE SYGNAL GROUP, a Telecom
Management Company that offers unbiased reporting, analysis and
implementation of telecom strategies to businesses of all sizes.
