In today’s economic climate, Telecom Expense Management (TEM) is one of the most important cost-saving functions within an organization. Selecting and implementing the right TEM vendor is critical to maximizing your telecom investments.
In today’s economic climate, Telecom Expense Management (TEM) is one of the most important cost-saving functions within an organization. The expense of telecommunications (voice, data, wireless) is now a focal point within organizations looking to reduce costs and improve staff productivity. Companies of all sizes rely on telecom systems for mission critical functions ranging from sales to service to customer relationship management. Nearly every crucial contact with customers, vendors and partners is dependent on a high functioning telecom system delivering to its maximum potential.
The International Legal Technology Association (ILTA) recently published an article on Telecom Expense Management Best Practices, “Taming Telecom Costs”, co-written by John Franconere from SPS and John Venditti from MTS. The article was published in the March 2011 issue of ILTA’s quarterly magazine, Peer to Peer.
There are a variety of growing issues facing companies who try to track and control wireless spend. While it's obvious that controlling the cost per minute will save your organization money, there are other factors specific to wireless device and service management that the ideal optimization solution will address.
The organizational base of mobile users is growing and thus produces larger overall costs. However, to further complicate the issue, more features and functionality get bundled into wireless service leaving end-user organizations in a difficult situation in which the cost per wireless user is also expanding. These reasons are causing market leaders to explore Telecom Expense Management (TEM) solutions as well as wireless optimization exercises.
Wireless telecom has become the fastest growing part of overall IT expenditures. Even in an environment where overall IT spending is decreasing, wireless expenses continue to increase at double digit rates.
According to many TEM and WEM experts, organizations implementing complete IT/telecom chargeback systems to their users experience 30 percent lower cost than do organizations where the cost of service is perceived as free. Today, most organizations find themselves somewhere along this spectrum — they do not provide all of their users complete utilization-based chargeback, nor do their users perceive the services they receive as totally free.
Whether it is in areas of accounting, HR, or sales, database-driven business processes provide significant benefits to businesses today. Establishing a Telecom Intellegence (TI) database as the single repository of information for all IT/telecom resources and costs improves an organization’s ability to make decisions regarding their voice, data, and wireless environments by providing complete and accurate historical trends and analysis.
A Telecom expense management (TEM) business process lets controllers, business unit executives, and IT/Telecom managers institute procedures and guidelines that ensure: