Have you used Telecom Expense Management? Have you heard about it? Telecom Expense Management is involved in managing your wireless, data, and voice environment with the aim of reducing risks and costs. You have two ways of doing it: first, you can do it all by yourself by using a web- based software. You can also partner with another firm to help you do some of these services. The Telecom Expense Management is there to help organizations manage wireless expenses, data, and fixed line voice through a single platform.
The costs incurred by companies and businesses may vary depending on which company one engages in providing Telecom Expense Management (TEM) services. You can decide to license software, purchase it as a service or even outsource these services. On average, companies pay 1% to 3% of their yearly telecom expenditure for its tools. This may reflect a 6% to 8% savings on costs.
What Is Telecom Management Expense?
Telecom Management Expense (TEM) usually involve a number of activities. They may include getting your telecom bills, searching for possible contract violations, making an accurate real-time inventory, and ensuring that you get the best deals by directly negotiating with vendors.
The focus areas of TEM include inventory management and change control, the management of invoices, the process of procurement, sourcing, payment of bills, and Enterprise Mobility Management (EMM) among others.
Who Needs Telecom Expense Management Services the Most?
The current business world has shifted to technology trends and IT complexities. Due to this fact, the need for a telecommunication expense management solution is the best thing you can do for your business. By using (TEM), you can easily reduce expenses and help you in managing your business enterprise mobility. Issues to do with ordering, procurement, inventory and fulfillment can easily be handled for your business and help cut down the initial costs. In business, you will get benefits on your mobile communications. TEM solutions are also becoming a significant part of enterprise mobility. They are currently having a growth of 16.1% annually.
How Much Is Usually Spent on Telecom Expense Management?
A number of businesses and companies usually incur costs from Telecom Expense Management according to the program they adopt. Telecommunications currently represent a steadily increasing percentage of enterprises’ budgets. According to Garner reporting, the year 2015 recorded a 0.7% increase in telecom spending.
In data downloads, there are statistics which indicate that about $534 billion was spent on data in 2015. Businesses need data in assessing critical sales and assets. They also require sufficient mobile data. On Mobile hardware, Forbes suggests that 34% of business enterprises opt to buy their employee’s mobile gadgets. Smartphones and tablets are usually purchased to aid remote collaboration. Telecommuting is another important feature that stimulates the procurement of mobile hardware.
According to Forbes, enterprise companies were targeted to spend an average of $13.8 million on data. This was as a result of the general increase of employees around the world who utilize mobile services. The spontaneous growth of cloud-based interfaces to other platforms may have also contributed to this growth. Now that video conferencing has taken center stage in the communication, employees are using more data every day. Data has been a priority that has significantly increased telecommunication expenses. You can visi to get more information on these costs.
Ways in Which Telecommunication Expense Management Can Help your Business
1. A Reduction in the Labor Costs
Telecom Expense Management can significantly help you reduce the labor costs at your business or company. By utilizing a TEM platform, you will be able to outsource some manual processes like procurement and inventory management. Other manual processes that you can outsource also includes invoice validation and management. Using TEM also increases labor efficiency while at the same time reducing the volume of bill payments. You can use automated invoice processing and consolidation. All these help you save on labor costs.
2. Creates Indirect Saving
When you decide to adopt a Telecommunication Expense Management System, you are likely to make more indirect savings. These are achieved through the following TEM services:
- Regular usage of procurement procedures to get volume discounts;
- Freeing up of working capital;
- Ensuring employees focus on revenue-generating projects where there is value increase;
- Improved collaboration and unified process;
Companies that help businesses in managing costs and processes offer TEM platforms. These platforms are cost effective since they reduce expenses and reduce the number of billing errors that usually originated from legacy telecom systems.
3. Cutting Expenses
You can be able to save a lot by automating the management of your telecom invoicing process. By making the management of your invoicing process, you are likely to save between 2 to 15% of your expenses. Doing this can help you get more accurate audits and recovery of any billing overcharges. You can also do strategic sourcing which will help you avoid incurring any new costs hence reduce your expenses by between 5 to 25%. When you do a more accurate inventory management, there is a possibility of getting a 5 to 15% reduction since you eliminate unused telecom services.
4. Get Longer and More Profitable Projects
If you partner with another company under the telecom expense management program, you will be able to manage and control complex cost center structures. The mobile expense management will help you to do the cross charging. You will also be equipped with the skills to manage cost information. This will ensure your business gets a continued revenue increase.
5. Greater Access to a New Market
When you work with a partner, you are able to get new opportunities that were not accessible previously. Your business growth will pick momentum and will enable you to deliver TEM support to new markets.Telecom Expense Management can significantly help you grow your business. You will be able to cut costs and at the same time increase your profitability. Ensure you get this platform to keep your business healthy. We hope that our input was helpful to you. We also look forward to reading your comments and feedback on TEM. Thank you!
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