Centralized TEM: a great ROI

Centralized Telecom Expense Management: Great Return on Investment by Peter Verhoeff

The Aberdeen Group states, in The Cost of Not Acting: The Total Telecom Cost Management Benchmark Report, that the average Fortune 500 Company spends 3.6% of their total revenue on telecom and related expenses. Telecom Expense Management is the end-to-end, automated management of wireline and wireless expenses, as well as circuits and devices. This encompasses the entire telecom lifecycle, including contract sourcing, procurement, provisioning, inventory management, wireless management and invoice processing/auditing. Reducing these expenses by even a few percentage points can have a significant effect on the enterprise's profitability.

The dramatic drop in telecom rates over the past two decades has created the perception that controlling telecom expenses is less important than in the past, but this belief is not borne out in practice. The reality is that, on average, corporate telecom costs have gone up, due to the proliferation of new applications, such as cell phones, smart phones, pagers, laptops and other portable devices. The sharp increase of high-speed Internet connections has also driven up costs.

Telecom cost savings can be achieved in many areas. For example, the same Aberdeen report mentions that a surprising 65% of survey respondents incur late fees. Although this constitutes but a small percentage of the overall costs, that money could have been put to good use instead.

A complete telecom expense management system is a software system that comprises the following areas:

* A centralized telecom inventory control system. The maxim that one cannot control what cannot be measured suggests that the first area to be addressed is to establish a complete inventory of all telecom resources and services. Many companies have only a vague idea of what equipment and services it is paying for. Companies are often billed for equipment or services they no longer use.

* Centralized telecommunications procurement. This is a logical next step. Unless procurement is also centralized, the inventory will quickly go out of date because of unreported telecom purchases. Moreover, centralized procurement will also tend to avoid unnecessary purchases and save money through bulk purchasing.

* Centralized processing of telecom invoices. This helps to make sure they are paid on time. In addition, by comparing invoice detail against actual call detail records (CDR) and vendor tariff agreements, billing errors can quickly be identified and corrected.

* Monitor resource usage. This will help to identify discontinued resources that may still be billed for, as well as inefficiencies, waste, telecom bottlenecks, and unauthorized or fraudulent use of resources. By detecting and reporting anomalies, the system improves security, which is important in this era of terrorism and industrial espionage.

The key to a successful telecom expense management system is automation and organization. The savings in labor costs alone can be dramatic. In addition, productivity can be boosted by relating telecom costs to individual departments, sections, projects, or even individual employees.

In short, a company that does not have a telecom expense management technique in place is in fact wasting funds, while an investment in TEM software will soon pay for itself.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Gartner reports telecom bills are riddle with errors

Gartner Reports Telecom Bills are Riddled with Errors by Lisa Santora

Gartner's report "North American MSBs Seek Cost-Saving Opportunities" states that "Telecom bills for voice and data are often riddled with errors, not discovered for many years." In today's cost-conscious environment enterprises cannot afford such telecom billing errors which eat into already strained telecom budgets. Deploying a telecom expense management tool provided by call accounting software systems can help enterprises identify cost savings and make invoice reconciliation easier through automating processes that when performed manually, rob companies of valuable time and money.

With enterprise offices located around the globe and wireless phone users complicating call detail records tracking, it isn't any wonder that companies find bill reconciliation difficult. Often each office location receives its own separate set of carrier invoices; with many of these numbering in the hundreds of pages and containing confusing line items for services that were disconnected. Manual telecom bill reconciliation often cannot catch the numerous errors contained in most invoices. Managers assigned to bill reconciliation can reclaim valuable time spent by deploying a call accounting and invoice management system that can automate these functions and indicate where cost savings can be made. This information can put a company in a good bargaining position when the time comes for carrier contract negotiation.
Couple cost savings with easy Web-based access via a browser from any desktop computer, and telecom expense management software offers compelling benefits to enterprises looking for ways to stretch their telecom budgets. Another key feature that can potentially pay for the cost of deploying a call accounting system is its ability to track suspicious call activity. Toll fraud is a global problem as evidenced by this m-net article "PABX hackers rack up $9000 phone bill."

The article reports on hackers breaking into an Australian company's network and running up an AU $9,000 bill within one week. Call accounting software systems can alert companies to attacks on the system. Users can set their own toll fraud alert parameters specific to their calling patterns and business environment. The combination of cost savings and security benefits makes a telecom expense management system a solid investment for today's enterprise.

Author, Lisa Santora, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Advice to business owners:use call accounting to track those hidden telecom expenses

Advice to Business Owners: Use Call Accounting to Track Those Hidden Telecom Expenses by Peter Verhoeff

Womenowned.com has great advice for new business owners, advice that should be taken to heart by any business owner. "The experiences I have had running businesses have taught me that there are always those extra expenses that completely blow my budget and that I never saw coming," says a poster on the site. Among the major problems listed are phone expenses which can and usually do present some very nasty surprises. The right call accounting solution can greatly assist with these situations.

"In addition to arranging the ideal hardware and billing options for a phone system, a company should always implement telecom expense management (TEM)," says Don Simons, CEO of TelSoft Solutions. "It not only helps track your internal telecom use, but also makes sure you are being billed correctly."

The web site gives some very good advice for new business owners, beginning with "know before you go." Estimate how many lines you will need, and carefully look over all the services your local phone company offers, and choose the ones which will be the most cost-effective. Include fax and modem lines in the equation. And always keep in mind the fact that your primary interest is, can customers and prospects reach you at all times?

Telecom expense management is even more vital for large enterprises. An established business must, of course, always be evaluating and re-evaluating their phone services and hardware with the same basic factors in mind. The central core of telecom cost management is call accounting. Without it, you are flying blind, not knowing who is using the company's telecom services and for what. You can also be ignorant of phone company charges, which may be incorrect and even billing for services that were never ordered.

Telecom expense management software can include many other modules, such as directory management, inventory and resource maintenance, invoice processing and more. In seeking to control your telecom expenses, it is important to select software that is right for your size company and provides you with the information you need.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

The challenges of Telecom expense management by P. Verhoeff

The Challenges of Telecom Expense Management by Peter Verhoeff

The costs vary with time of day, distance and other factors. In addition there is always a shift towards new technology. According to a study by the Aberdeen Group, 83% of companies surveyed report that their top pressure is in migrating to new technologies.

More and more enterprises are moving to Voice over Internet Protocol (VoIP) and Multi-Protocol Label Switching (MPLS), which are methods of transmitting voice via computers. The Aberdeen Group reports that all but 29% of the corporations surveyed have implemented these new technologies, are in the process of implementing them, or plan to do so within the next two years.

These new technologies require new methods of monitoring calls and controlling costs. In selecting a telecom expense management (TEM) software system, it is important to choose a system that is capable of dealing with these new technologies, as well as continuing to process legacy voice connections. Recent developments in telecom include not only VoIP, but also cell phones, IP gateway devices and calling cards.

In switching to VoIP, it is very important to discontinue the old voice channels and to make sure that the company is no longer billed for them. In the VoIP testing phase, management often leaves the legacy voice channels in place and then forgets to get rid of them after VoIP has proved itself. That way, of course, any potential savings from the new technology are lost.

Making a VoIP network secure represents a challenge, but because of shared Internet technology many of the security issues are the same as those for e-mail, including spam and virus protection. Both hardware and software considerations enter into this. Given the right amount of diligence, VoIP communications can be made even more secure than the traditional PSTN (public switched telephone network).

With cell phones and calling cards, it is advisable to liaise with Human Resources, to make sure that the company stops paying for the phone bills of ex-employees.

As far as computing the costs of calls, quality call accounting software can compute these easily from call detail records (CDRs), as well as project future expenses. Moreover, modern telecom expense management software can also perform many other functions, such as issue alerts on potential telecom fraud or abuse, provide needed reports, and maintain an accurate telecom inventory.

For more information on Telecom Expense Management (TEM), visit Telsoft Solutions. Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

TEM an overview by P. Verhoeff

Telecom Expense Management: An Overview by Peter Verhoeff

Telecom expense management (TEM) is also known as Telecom Cost Management (TCM). Telecom is short for Telecommunications, which means communication over a distance. This includes not only your PBX telephone network, but also wireless devices, such as cell phones, pagers, BlackBerrys, and iPhones, as well as the Internet communication channels for your company's computers.

Telecommunications are a major expense item in most corporations, especially those involved with high tech. Some of the ways in which you can reduce telecom costs are:

* Getting the best possible rates from telecom vendors

* Making sure you don't get charged for calls that weren't made

* Making sure you don't get charged for resources you no longer own

* Optimizing your existing resources for best utilization

* Using software to control expenses, thus freeing up personnel

* Reducing telecom misuse, abuse and fraud

* Centralizing bill payment and ordering

* Centralized control of equipment move, add, change or disconnect (MACD)

Telecom expense management is the technology that deals with controlling and reducing telecommunications expenses through effective use of technology, people, policy and procedures. The technology aspect includes software to keep track of calls, maintain inventory, record changes in network configuration and contracts, produce reports and issue alerts, to name a few.

TEM can also interface to other software modules, such as General Ledger and Accounts Payable, or to a Human Resources database to keep track of new personnel and people who have left. This last one is important, as there are many known instances where employees were given cell phones and the company inadvertently continued to pay their phone bills after they left.

One company, after implementing TEM software, found that it was still paying 3,500 cell phone bills every month for employees who no longer worked there. This cost them over a million dollars a year in unwarranted expenses.

Another advantage of having an effective TEM system is that all telecom vendor invoices are processed in the same place, which should make late payment penalties a thing of the past. Moreover, the tighter inventory control made possible by the centralized TEM system makes switching to new technologies much easier. In addition, telecom audits are easy to carry out, as all the telecom information is now in one place.

In short, TEM is the simple solution to keeping telecom costs in check, controlling telecom inventory and providing an accurate audit trail.

For more information on telecom expense management, visit Telsoft Solutions at http://www.telsoft-solutions.com.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

VOIP and TEM

Voice over Internet Protocol and Telecom Expense Management by Peter Verhoeff

Voice over Internet Protocol (VoIP) is a method for making phone calls via the Internet. This technology takes analog audio signals and converts them into digital form for Internet transmission. There is a tremendous advantage in doing that, because other than the cost of a high-speed Internet connection, the calls are free, as they no longer involve the telephone company.

VoIP is a new technology that has the potential to completely change the world's telephone systems. VoIP technology is adopted by many companies, which due to its cost advantages is likely to replace the Public Switched Telephone Network (PSTN) in the future.

Knowing that with VoIP the phone calls are essentially free, does it still make sense to have a telecom expense management (TEM) system? Yes, it does, because TEM is not just used to calculate the cost of phone calls, using call details records (CDR). It does a lot more. A telecom expense management system can assist in the following:

* Inventory Control. By knowing what resources are unused, under-used or overloaded, much expense can be saved and the telecommunications network made considerably more effective, as well as avoiding future expenses.

* Operation Costs. Having a centralized receipt point for processing vendor invoices provides an effective method of measuring total telecommunications costs and a way to keep them in check.

* Audit Controls. Telecom vendors frequently make billing errors, mostly in their favor. The TEM system compares invoices against computed costs and show up any discrepancies.

* Fraud Control. The TEM system can show up unauthorized or fraudulent use of telecommunications resources, both from outside the enterprise, as well as from within. In today's world security is of vital importance.

* Activity Analysis. By knowing how communications are being used in the corporation, it is possible to improve on the existing structure and thereby enhance productivity and profits.

* Performance. Knowing who is using the company's equipment and when provides an indication of productivity, as well as assists in planning for the future.

* Work Flow. Tracking work orders, trouble tickets and service requests assists in the rapid correction of problem areas in the communication system.

VoIP and TEM provide a winning combination, which can result in reduced costs and improved productivity.

For further information on telecom expense management visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Eliminating Unused Resources with TEM

Eliminating Unused Resources with Telecom Expense Management by Peter Verhoeff

With the proliferation of mobile devices and new technologies like Voice over Internet Protocol (VoIP), the old ways of keeping track of equipment and services are no longer adequate. And even though communication costs have plummeted in recent years, demand has also increased, with new high tech devices being added almost daily. If anything, the need for Telecom Expense Management (TEM) software has increased, particularly in the area of inventory control.

Tracking inventory can be a troublesome task. A good starting point is to collect all telecom vendors invoices and establish what is being billed for. This may not give an accurate picture, as billing errors are common.

Some TEM systems incorporate a cable management module that provides a firm basis for establishing what the communications network consists of. This feature greatly simplifies managing the physical layer details for any network. It documents the circuits and physical connectivity for all cable connections between voice and data equipment in single or multi-building network cable plants.

The cable network data must be supplemented with an inventory of mobile devices that are not part of the physical network. These mobile devices should be recorded, along with the names of the persons using them and tied to personnel records. The necessity for this is illustrated by the case of one large company that, after implementing a TEM system, found that 3500 monthly cell phone bills were still being paid for ex-employees who had long since left, costing the company in excess of a million dollars per year.

Once the inventory is complete and accurate, it should be inspected for any non-optimum utilization of resources. For example, it is not uncommon for telecom vendors to continue billing for branch locations that have been closed, either because they were not notified or because they failed to adjust their records. Modern TEM systems can automatically detect and report these unused resources. Any equipment or service that is not associated with an employee, department, project or profit center is likely to be unused and can be discontinued.

The telecommunications network is not a static entity and configuration changes are common. Any moves, additions, changes and disconnections (MACD) of service or equipment should immediately be recorded online, so as to keep the inventory up-to-date.

For further information on telecom expense management visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Web-based TEM: Benefits by P. Verhoeff

Web-Based Telecom Expense Management: Benefits without Ownership by Peter Verhoeff

In the old days, getting new software, including telecom Expense Management (TEM) systems could be problematic. Aside from having to budget for a fairly large amount of money, there was the problem of what hardware to install it on, who would install it, who would teach people to run it and who would maintain it, keeping it current with all the updates and upgrades that would inevitably follow. While it gave complete control over the software, it also presented headaches, especially with the often abysmal quality of technical support.

All this has changed with Software as a Service (SaaS), also known as Application Software Providers (ASP) and Web-based or on-demand software. With web-based call accounting and TEM software a small monthly fee replaces the large up-front payment and the provider of the software service now has the job of keeping the software up-to-date and working as expected, doing backups and keeping the system up and running.

The advantages of SaaS are many. Anyone who has been authorized with a valid login and password can access the software from any computer that has a Web browser and access to the Internet. There is no need to install any special software. Traveling executives can access the software from their hotel room and get the data they need right away, without a need to call the head office.

With TEM software, different levels of access can be implemented. For example, department heads, human resources personnel, accounting, IT administrators, security personnel and corporate executives can be given access only to those parts of the system they need to do their jobs. Provided they have been granted access, different personnel can simultaneously view or print the data they require.

In terms of return on investment (ROI), SaaS TEM can provide financial benefits much sooner than with an outright purchase. Not only is there immediate access to the latest software, but there also is no large financial outlay to be amortized over a long period of time. The modest monthly fee can easily be budgeted for and provides financial predictability.

In the past, some companies that purchased TEM software failed to get the full benefits due to a lack of in-house expertise. With SaaS, implementation becomes much easier as the providers of the software already have the expertise and personnel quickly learn to use their Web browsers to obtain the data they require.

The beauty of managing telecommunications with a Web-based TEM system is that it allows corporations to concentrate on running the business, rather than the details of running and maintaining their software.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Chargeback using Telecom Expense Management

Chargeback Using Telecom Expense Management by Peter Verhoeff

Telecom Expense Management (TEM) and call accounting software provides many tools to improve the viability of an organization. One of those is the ability to bill the telecom services and resources back to the divisions, department, sections or individuals who used them.

One area of application is for hotels and motels, where guests are billed for their telephone calls. This of course requires fast reporting as the telephone usage data needs to be available to include in the bill when the guest checks out. It is important for the call accounting software to interface easily to the hotel's property management system (PMS).

Having the call accounting system connected to the Internet makes it possible to rapidly and automatically update rate tables and permits the software vendor to do periodic online updates and maintenance of the system.

Another area of chargeback is at colleges and universities. Here the requirements are a little different from hotel billing. Faculty staff, projects or students may be billed monthly, with possibly different rates for sporadic and high volume users. A budget limit may be assigned to each entity. When the budget maximum is reached, further calls can be denied until the bill is paid or the budget ceiling is raised.

In legal and other professional offices it is important that the call accounting system be able to interface with the existing billing and accounting system, as many of the calling charges would be billed to clients, where phone numbers are associated with the firm's account codes.

In the general business arena, periodic billing can be performed automatically to departments, sections, projects, or individuals. For example, billing can be multi-tiered, where the corporation bills the department and the department bills the individuals within that department. For employees, the call accounting system can interface directly with the payroll system for automatic payroll deduction. The system would have a way of differentiating between billable and non-billable calls.

With modern call accounting systems all of the above functions are feasible, which allow companies to perform the complex billing tasks with little effort. The advantages of chargeback systems are many. It provides an accurate picture of usage patterns and an equitable distribution of telecom costs. This is not limited to telephone use, but can also include the use of such varied items as laptops, cell phones, and even on-demand software.

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Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Advantages of Telecom Invoice Management

The Advantages of Telecom Invoice Management by Peter Verhoeff

Telecom Invoice Management can exist as a stand-alone software package, or be part of a larger Telecom Expense Management (TEM) system. It is designed to make the processing and verification of telecom invoices faster and simpler. Other than saving your company money, telecom expense management can further assist you in negotiating more favorable contracts with telecom providers and facilitate planning and budgeting.

Your company needs a telecom invoice management system if:

*You don't know what your telecom annual expenses are

* You are manually processing your telecom invoices

* You do not have a central database for telecom expenses

* You are not sure what telecom equipment and resources you have

* You sometimes have to pay late payment charges

* Your telecom bills seem to rise more rapidly than expected

Controlling and managing telecom invoices is a difficult task. Telecom billings are complicated by involved agreements and many line items that are variously charged, depending on location, time of day, duration and other factors. Telecom carriers seem to do what they can to foil your best attempts at making sense of their invoices. Without the proper software, it is almost impossible to verify their correctness.

Many organizations use different providers for various telecom services. This results in different tariffs. Not only that, but there are various one-time charges, charges for equipment not based on usage, tiered or step-wise rates and many other factors that make analyzing telecom charges extremely difficult and time-consuming.

Your company is not the only one having difficulty figuring it all out. Your service providers have the same problem. According to Gartner, 19 - 20% of telecom charges are in error. It is not uncommon to be charged for disconnected lines and unused services.

The "price creeping" phenomenon is another problem that your telecom invoice management system will reveal. Telecom providers tend to raise their rates gradually, one at a time, so the increases won't be obvious. Your telecom invoice management system will catch these unauthorized changes and alert you. Telecom invoice management software resolves all the above difficulties.

With these tools your Accounts Payable department can finally make sense out of these invoices and save you money. . These three activities could save you as much as 25% or more on your telecom bills.

* Invoice administration (save up to 5% by avoiding late payment charges)

* Invoice verification (make sure you aren't overcharged, using phone bill tracking)

* Invoice reconciliation (fix billing errors)

For more information on Telecom Invoice Management, please visit Telsoft Solutions.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Addressing hidden costs with TEM

Addressing Hidden Costs with Telecom Expense Management by Peter Verhoeff

Prices for telecom services have dropped dramatically over the past decade, but telecom-related labor costs have not. In fact, indirect costs related to telecom can mount up to more than your company's telephone bill. This article touches on various ways manpower is used in relation to telecommunications and explains how telecom expense management (TEM) can cut those hidden costs.

Manually gathering, sorting, checking and preparing for payment all the invoices from telecom vendors is a fantastic waste of time and manpower. This is an area where automated processing can pay off big time. Most vendors now provide electronic billing and you should switch vendors if they don't.

Ideally, all your telecom invoices arrive in electronic form at a central location and are fed directly into your TEM system. There, invoice line items are compared against actual usage call detail records (CDR) and inventory data. Reports are then created, including alerts on anomalies, to prevent over billing. Telecom billing errors are not uncommon and usually in the carrier's favor.

Once the discrepancies have been sorted out and vendor invoices reconciled, the invoice data can be fed directly into the enterprise's Accounts Payable system and their payment fully automated. Having vendor invoices paid on time can in itself provide considerable savings, avoiding not only late payment penalties, but also wasted manpower, should the service be disconnected.

With more and more mobile devices in use, keeping track of company-owned cell phones, pagers, smart phones, etc., becomes a challenge. Many a company has inadvertently continued paying for ex-employees' cell phones. A good TEM system can track mobile calls and, using human resources data, monitor personnel changes to ensure that employees who are leaving return their company-owned mobile devices.

The telemanagement system can compare telecom usage against inventory, isolate traffic bottlenecks and identify problem areas to facilitate troubleshooting. A telecom management system also assists in planning and allocating future resources. Communications are thus optimized, minimizing lost production resulting from busy signals, dead phones and slow Internet connections.

Finally, by storing CDRs of all calls, including date, time, duration, origin and destination the telecom expense management system provides valuable records that speed up telecom audits. Being able to present all relevant historical information on telecom usage at a moment's notice frees up an executive's valuable time.

For more information on call accounting software, please visit Telsoft Solutions.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Tips to slash Telecom costs

Tips for Slashing Your Telecom Costs by Peter Verhoeff

One of the many ways in which telecom expense management (TEM) can assist in cutting unnecessary telecom costs is with so-called reverse auctions.

A reverse auction is where you decide what your company's telecom requirements are for your wireline and wireless services and then getting several telecom carriers to bid for the contract. You would of course let their sales representatives know that they are not the only ones doing the bidding.

As they are competing with each other, you will get progressively better prices. Price, however, is not the only criterion. You also need to take into account the terms of the contract, also negotiable, such as early termination clauses and service level agreements.

According to the Aberdeen Group's report, The Cost of Not Acting, "Reverse auctions are driving significant incremental gains, with average cost reductions of 33%, but user adoption is low with 14% currently using this technology and 61% indicating they have no plans to use reverse auctions." With savings like that, it is puzzling why not more enterprises are taking advantage of this tool.

Another way to save money is to make sure all telecom bills are paid on time. This may seem obvious, but it is amazing how many corporations spend considerable amounts on late fees. With a centralized call accounting or telecom expense management software system it is fairly easy to ensure payments are made on time, as alerts can be issued when payments are becoming due.

Centralized telecom invoice processing, payments, ordering and contract negotiations are a key factor in effective telecom expense management.

Another tip for reducing costs is chargeback. Reports can be generated that list calls by department and by employee. Departments can be made to pay their part of the monthly telecom bill, which will make department heads sit up and take notice, as it affects their bottom line.

Having the reports further broken down by employee will impose a discipline and discourage them from making frequent and lengthy private calls. Some TEM systems provide the option that allows employees to mark calls as private, which permits them to make private calls and have them pay the company back, which is good for the employee's conscience, as well as the company's financial condition.

For more information on call accounting and telecom expense management, visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Despite dropping costs Telecom increases

Despite Dropping Costs Telecom Expenses Increase by Peter Verhoeff

While the cost per minute of calls has dropped dramatically in recent years, most corporations are now paying more for their monthly telecom bills than they were before. Much of this is a result of increased use of telecom resources with the advancement of new technologies.

Computers can now be found on most employees' desks and a vast number of them have high-speed connections to the Internet. Then there is wireless technology: cell phones, telephone calling cards, pagers, laptop computers with wireless Internet connections, PDAs, and many more.

Among the new technologies, which enterprises find hard to monitor and control are VoIP (Voice over Internet Protocol) and MPLS (MultiProtocol Label Switching). According to the Aberdeen Group in The Cost of Not Acting: The Total Telecom Cost Management Benchmark Report, "On average, enterprises proactively manage 67% of their wireline expenses and 57% of their wireless expenses."

Cell phones are now not only used for telephone conversations, but also for Internet access and a number of other high-bandwidth uses, all of which add up to increased costs. Besides, being mobile devices, they are not as easy to control as stationary equipment. This has led to many instances of companies continuing to pay for cell phone use by employees that have left.

In short, for many corporations the telecom scenario is quite chaotic and without an effective telecom expense management (TEM) system the situation is likely to get worse. Recommendations include organizational changes, such as:

* Centralize both wireline and wireless telecom purchasing.

* Centralize the processing and payment of all telecom invoices.

* Centralize contract negotiations with telecom carriers to get the best rates.

* Keep a centralized inventory of all telecom resources.

In addition, an automated system is needed to monitor the use of telecom resources. An effective TEM software system can be a fantastic time and money saver that soon pays for itself. Among the things it helps accomplish are:

* By recording call detail records (CDR) it permits bill tracking and will show up discrepancies with vendors' invoices, which helps to prevent vendors from overcharging.

* It provides an accurate audit trail of calls made, which can help predict future costs.

* It can provide an indication of the effectiveness of the sales force (number of calls compared to volume of sales).

* It can show up security violations (unauthorized calls, call fraud).

* It can assist in planning MACD (move, add, change, disconnect) to optimize existing resources and to plan for the future.

The bottom line is that an effective TEM system can provide great ROI with reduced telecom costs, accurate record keeping and improved efficiency.

For more information on telecom expense management, visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

TEM outsourcing

Telecom Expense Management Outsourcing Gaining Ground by Peter Verhoeff

Telecom Expense Management (TEM) is not a broadly known concept. In most businesses, telecom services are not well controlled and tracked, which hurts their bottom line. Corporations are becoming more aware of the need to control telecom costs. TEM, which includes call accounting and bill tracking, is the tool for successfully controlling these expenses. Some areas where telecom costs can be reduced are:

* Carrier billing errors

* Charges for discontinued resources

* Inefficient use of inventory

* Contract terms negotiation

* Limiting telecom abuse and fraud

Substantial savings can be realized. According to a Gartner report 12 to 20 percent of corporate telecom charges are in error, 85 percent of which are in the carrier's favor. Thus it is apparent that companies that do not use telecom expense management are wasting money.

Some carriers are now beginning to offer TEM services for customers, but does that make sense? Would you put the fox in charge of guarding your chickens?

A far better solution is to deal with a reputable independent TEM provider to either purchase the software or to outsource with them. Both approaches have merit. While owning the system provides greater control, outsourcing has some distinct advantages, not the least of which is the availability of the provider's expertise. Many companies that want to acquire a TEM solution choose to outsource, rather than purchase the system outright. Some of the benefits of outsourcing are:

* No large capital outlay

* Managing telecom expenses is less time consuming

* Frees up personnel resources

* Invoices are processed by the provider's expert staff

* Big savings with little effort

* No worries about software maintenance and upgrades

* Concentrate on the big picture without worrying about the details

A large financial institution recently decided to go that way. Up until then they struggled to control their telecom expenses. Two employees were charged with processing thousands of telecom invoices in addition to providing resources for thousands of employees.

With a lack of free time to check for billing errors, they had to be content with the occasional spot checks to see if this month's charges are more or less in line with last month's. While any system is better than none, this did not make for great accuracy. Now billing errors are caught by the new outsourced TEM system.

With the aid of the TEM provider, the financial institution saved over 10 percent, or about $600,000 a year, after renegotiating contracts with the carrier. This being only a fraction of their total savings, it can be seen that TEM can provide amazing returns on investment (ROI).

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Containing Telecom Costs

Cost Containment with Telecom Expense Management by Peter Verhoeff

While Telecom Expense Management (TEM) also known as telecom cost management (TCM), is becoming fairly well known, not every enterprise has yet taken advantage of its many potential benefits.

There are two main aspects to effective TEM: * Catching billing errors from the carriers (often in their favor) * Optimizing the company's utilization of telecom resources

Billing is a complex issue, with many factors entering into it. The cost of your telecom bill depends on the number of calls, their duration, their destination, the time of day, as well as what plan has been agreed upon with the carrier.

Carriers are in business to make money and they will bill for whatever they think they are entitled to bill for. Sometimes they bill for resources or services you did not get. As is the case with taxes, while the company should pay its fair share, the object is not to pay more than is needed.

Overpayment is not limited to billing errors, though. Without a well-controlled system of handling telecom billings, it is not uncommon for enterprises to run up additional and unnecessary charges for late payments.

For many enterprises, however, most of the cost savings will come from making the best use of existing resources. This is particularly true of new technologies, such as voice over Internet protocol (VoIP) and mobile devices. Lack of know-how is the main cause of these areas being relatively uncontrolled in many companies.

One large corporation, for example, found during an audit that it was still paying for thousands of cell phones belonging to people who were no longer employed there.

Often, when switching to new technology, the company will temporarily run both systems in parallel until the new system proves out. That approach makes sense, but management might then forget to discontinue the old system, resulting in much unnecessary expense.

The same is true for branch locations that are being closed. The company typically will take care of most of the details, but might omit to notify the carrier and make sure they are no longer being billed for the discontinued service. When ordering telecom services, a company may overestimate required resources, resulting in overpayment, or underestimate needed resources, resulting in lost business. TEM can help find and correct these errors.

The above are a few examples of how a Telecom Expense Management (TEM) system can improve a company's return on investment.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom safety for companies

Telecom Fraud Prevention Tips by Peter Verhoeff

Dishonesty is rampant on planet Earth, and the Telecom industry is far from immune to unscrupulous individuals who seek to defraud your company. While an effective Telecom Expense Management (TEM) system provides the tools for detecting instances of toll fraud, here are some tips that can help curb toll fraud, even if your company doesn't have a TEM system yet.

Toll fraud is the fraudulent, illegal use of a company's telecommunications system by a third party from a remote location. According to a report from The University of Texas, it is estimated that toll fraud in the United States exceeds one billion dollars per year and continues to rise. And in 1992, Bell Canada blocked calling card calls to overseas destinations, as calling card fraud was causing them to lose half a million dollars per day.

The damage to a business due to toll fraud is not limited to inflated telephone bills. For example, productive employees may be frustrated by not being able to get an outside line that has been taken over by a fraudster. And customers trying to call in and finding the line busy may end up taking their business elsewhere.

Even though no foolproof system exists to prevent toll fraud, there is much that can be done by being alert and taking some preventive security measures. There is no substitute for awareness and diligence in preventing telecom fraud.

Employee education is vital. Employees should know to keep secure their passwords and authorization codes, just as they would their credit card information. When employees are made aware of the reality of toll fraud and what can be done about them, they can become proactive in catching and reporting suspicious calling patterns. The AT&T website provides information on how to spot suspicious calling patterns.

Employees should be informed of where to report any suspicious calls, so that appropriate corrective action can be taken promptly. Also, measures should be taken to keep PBX and other equipment secure. Passwords should not be obvious and be changed periodically.

A good Call Accounting system can provide improved security and an excellent return on investment (ROI) by alerting security or management personnel to unusual and suspicious calling patterns.

Call accounting provides another way to clamp down on unauthorized and fraudulent calls by billing back telecom charges to the various departments. When a department head suddenly gets a much increased telephone bill, it immediately becomes clear that something has gone awry.

Fraud detection is but a small part of a complete Telecom Expense Management system, which can provide additional functionality such as phone bill tracking and asset management.

For more information on Call Accounting and Telecom Cost Management, visit Telsoft
Solutions.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Paying the right cost for telecom use

Don't Overpay for Telecom Services by Peter Verhoeff

According to TheInfoPro, an independent research network and leading supplier of market intelligence for the Information Technology (IT) industry, 95% of large enterprises pay too much for their telecom services, but less than one third of these corporations are using tools to prevent being overcharged by vendors. Many corporations are not yet taking advantage of Telecom Expense Management (TEM) and related tools, such as Call Accounting.

The reason many carriers overcharge may not be a result of dishonesty on their part, but rather a result of their inability to keep up with changing customer requirements and constantly changing technologies. Many vendors have legacy billing systems that are ill suited to keeping up with the latest developments. In fact, billing errors in excess of 15% are not uncommon.

Even though effective low cost tools are available, most companies are not taking advantage of them to reduce their telecom expenses. Thus it appears that education is needed to alert corporate executives to the fact that they are in essence throwing money down the drain. Another part of the problem lies in the fact that the telecommunications industry "consists of a constantly shifting labyrinth of services and products--from Voice over Internet Protocol (VoIP) to wireless devices" according to an Aberdeen Group report on Total Telecom Cost Management (TTCM).

For TTCM to be totally effective, some corporate restructuring may be necessary, because best practices dictate that telemanagement should be centralized.

Foremost in importance is bill tracking through the use of Call Accounting and Invoice Management software, which keeps track of PBX-generated Call Detail Records (CDR). This is a vital tool in determining whether or not the vendor's invoice is correct. A good Inventory Management system will issue reports that show up any discrepancies, so that a vendor's billing errors may be caught and corrected rapidly. An important Call Accounting use is to detect and correct telecom fraud and abuse.

Asset (inventory) Management is another vital factor. In order to verify the correctness of a vendor's invoice for equipment and resource usage, it has to be known what you have. Large corporations with many branch locations may be billed for lines, switches and phones at branches that have been closed down months ago, making for huge overpayments.

The payment of invoices should be centralized, using a TEM system that includes Invoice Management. This allows a good grasp of the total telecom cost and ensures timely payments, thus avoiding late payment penalties. And of course it is clearly advantageous to handle any billing disputes through the legal department at the head office, rather than from a branch location.

Asset management further includes optimizing existing resources, expanding the network where needed and getting rid of what is no longer required. Centralizing the purchasing and acquisition of resources allows for greater effectiveness in resource utilization, while corporate clout allows for better deals to be negotiated.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Wireless cost management

Fundamentals of Wireless Cost Management by Karen Thatcher

The 21st century has brought about a revolution in wireless telecommunications for both voice and data applications. For today's corporate enterprises, wireless expenses have grown to comprise a sizable portion of overall telecom spend. The convenience and proliferation of wireless-enabled laptops, smart phones and PDAs makes it almost certain that wireless will be the fastest-growing segment of telecom expenditures for most companies in the coming years.

The ability to control these escalating wireless costs within the corporate environment can prove to be a real challenge. Although a good percentage of companies attempt to reign in wireless spending through cost management programs established by IT departments and/or management, some experts estimate that up to 35% have no such programs in place.

As is the case with any worthwhile endeavor, the ability to master and implement fundamentals is what separates the pros from the amateurs. Begin to integrate the following wireless cost management fundamentals across your organization. You will undoubtedly see a considerable reduction in overall telecom expenses.

Fundamental 1 - Know Your Wireless Inventory

Unlike large telecom purchases (e.g. a new PBX), wireless inventory invariably comes down to many individual transactions. To effectively manage this seemingly endless flow of wireless devices, it is essential that you know which ones are in use and what is actually being paid for.

The first step in gaining control is to compile an inventory of every wireless device currently in use. This comprehensive list should include both enterprise-owned devices as well as employee-owned devices that are billed back to the company via monthly expense reports. Create a spreadsheet to track handsets, laptops, PDAs and other wireless devices currently in use. This simple action will invariably turn up devices that are not being used and therefore can be eliminated. Be sure to also list wireless contracts currently in place for each device that is in service.

Fundamental 2 - Know Your Wireless Usage

Wireless usage can be personal in nature. When choosing a wireless plan for employees, simply opting for the usual "bucket of minutes" or generic "pooled" plan may not be the most effective cost-saving option. Once you have completed an up-to-date inventory of all wireless devices, it is now time to dig deeper and determine the most cost-effective plans for each wireless device in service.

Gaining complete control over wireless usage can be easier said than done however. Many wireless devices in use within a company are employee-owned or at least employee-managed. Even though the company may be footing the bill, some employees may be reluctant when asked to relinquish power over their rates and plans.

To fully optimize wireless plans company-wide, gather and analyze wireless bills for the previous three months, then group into categories based on average monthly usage. You may find that a small percentage of employees are extremely high end users (e.g. traveling salespeople), another percentage average users and then another group whose usage is small in comparison. Once this data is compiled, it becomes much easier to assign the appropriate plans (and handsets) to individuals based on average usage. This approach is much more targeted (i.e. cost-effective) than simply throwing everyone into a "bucket of minutes" or generic "pooled" plan.

Fundamental #3 - Determine Ownership of Inventory

Wireless devices become part of the corporate landscape in one of two ways: through "official" corporate channels or through employee ownership.

To command complete control over wireless expenses it is best if the company owns each and every device in service. However, there will almost always be instances where employees have wireless contracts in their names. Typically, these charges end up on monthly expense reports in miscellaneous categories - oftentimes not under "telecom" expenses.

Determining ownership is critical to managing wireless expenses. Your initial inventory should include contract ownership information and the dates when contracts come due. Contract expiration is the optimal time for transferring ownership back to the company. (Plan on a certain amount of resistance from employees when this occurs.)

Fundamental 4 - Determine Management Responsibilities

Given the fact that the nature of wireless is somewhat decentralized and fragmented across a corporate organization, the area of responsibility for this category is often blurred and undefined. Who is fully responsible - IT? Telecom? Accounting? Senior Management? The answer can be one or a combination of all of them.

Before a comprehensive written wireless policy can be implemented (see fundamental #5), you must determine the level of responsibility of wireless for each department involved in the process.

For example, the telecom department may be responsible for keeping inventories and contracts up to date, whereas accounting may be responsible for auditing bills and dealing with employee issues, carriers and billing. Upper level management may take a more passive role or maybe choose to oversee the entire wireless department. On the other hand, perhaps the entire wireless area will fall under the watchful eye of the IT or telecom departments.

Wherever you choose to assign responsibility, be sure that each department is regularly accountable for their function in the system. Ideally, each can serve as checks and balances for the other, keeping the wireless portion of the company running like a fine Swiss watch.

Fundamental 5 - Establish a Written Wireless Policy

The previous fundamentals of wireless cost management lead to one thing - establishing and distributing a company-wide written wireless policy. Having a written policy serves not only as the impetus and pivotal document for keeping wireless costs under control, but it also sends a clear message to employees that the corporation is serious about how wireless devices should be used and what usage will be paid for by the company.

Keep this in mind when constructing your policy and determining "out-of-policy consumption" - it is virtually impossible to quantify and understand each and every wireless cost (i.e. call or use) when scattered among dozens or even hundreds of expense reports. This is the reason fundamental 4 is so important - get those contracts into the company name as soon as possible.

Your written wireless policy should include specifics on how and when wireless devices can and should be used - including any penalties for "out-of-policy" usage.

Fundamental 6 - Consult an Expert on Wireless Management

For companies that have no wireless cost management programs in place, the thought of mastering the above concepts can seem a bit overwhelming. They sound great in theory, but actually putting these fundamentals into practice can be another story.

If your company currently has a wireless cost management program in place, you may simply need to fine tune it. If not, consider consulting with a wireless cost management expert to complete the task for you. The cost-savings will more than pay for consulting fees incurred, and the long term savings will be substantial. Outsourcing your entire wireless management (even bill paying) can be very cost-effective and free up staff to focus on core business activities.

Karen Thatcher is President and CEO of TelCon Associates, Inc. TelCon Associates has been helping companies of all sizes reduce and manage telecommunications expenses for over 35 years. Visit http://www.telconassociates.com for free resources and information on how to effectively manage and reduce your corporate telecom spending.

Call accounting

Despite "Truth in Billing" Policies, Call Accounting is More Needed than Ever by Peter Verhoeff

According to an article in Billing World and OSS Magazine, telecom service providers have still not fully complied with Federal Communications Commission's Truth in Billing (TIB) policies. The battle to obtain clear and concise items in billing is part of a heated battle that goes all the way back to 1998, and billing is still subject to manipulation by regulators, carriers and special interest groups. For corporations, many of which spend hundreds of thousands yearly in telecom expenses, this means that call accounting is vital.

"With telecom billing still subject to ambiguously-worded items, it is crucial that companies have a cost-effective and foolproof method of cross-checking their billing," says Don Simons, CEO of Telsoft Solutions.

According to the article, FCC TIB rules require a telephone company's bill to "contain full and non-misleading descriptions of charges." However, terms such as "full and non-misleading" are not clearly defined with in the rules, there are no examples of unacceptable or acceptable presentations, and penalties for noncompliance are not stated. If there are complaints about billing descriptions, the FCC can begin an investigation and eventually obtain an injunction compelling a service provider to comply--but what can be done in the meanwhile to ensure billing is correct, and to call questionable items to the attention of AP personnel?

A product such as TelSoft's MegaCall is a perfect solution. MegaCall tracks telephone call activity generated by any type and any number of PBXs from the source of the call record to the assignment of accountability. It analyzes Call Detail Records (CDR) for an entire enterprise, domestic and international, from a single centralized system. All information is collected in real-time and is immediately available for viewing and reporting - an essential support for telecom expense management throughout the enterprise. Telecom expense can then be compared with billing to ensure billing is correct.

Quite in addition to billing for services used and service contract items, carriers can also add, or be compelled to add, taxes or tariffs which may or may not be fully described as such. In addition, the carrier may not be correct in passing these charges on to service users--hence it is in the user's best interest to utilize call accounting.

For more information on Telecom Expense Management and Call Accounting, visit Telsoft Solutions.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Centralizing TEM

Telecom Expense Management: The Case for Centralization by Peter Verhoeff

The area of savings with which people are most familiar is centralized invoice processing. All telecom invoices are collected in one place and compared against call detail records (CDRs). Any discrepancies are noted and handled. Because the majority of billing errors tend to be in the vendor's favor, correcting them can add up to considerable cost savings.

According to an Aberdeen Group report, 65% of enterprises surveyed do not have accurate inventory and service usage data, while 49% of respondents cited lack of automation to manage network expenses. Automated computer-based call accounting software can save huge manpower costs. In selecting vendors, preference should be given to choosing one that provides electronic invoices that can be fed directly into the computer, without the need to enter the data by hand.

A further side benefit is that a computerized call accounting system facilitates chargeback to the various departments, which makes these departments more cost conscious, which in turn will tend to reduce costs further. Centralized call accounting is also more likely to show up instances of telecom fraud, misuse or abuse and facilitate their correction.

The next obvious step is to centralize the payment of invoices as well. This gives management a much better overview of costs and provides greater control over disbursements. Because of its greater clout, the centralized department is in a better position than individual departments to get vendor over billing corrected. Vendor charges for late payments are also much less likely to happen with centralized control, which further adds to the savings.

Centralized payment naturally leads to centralized management, allocation and consolidation of existing telecom resources, as well as the planning for future changes. It makes sense that this aspect alone can save an enterprise considerable expense in avoiding wasteful duplication of services and eliminating unneeded facilities. The result is greater efficiency at lower cost.

Finally, centralized management and planning leads to centralized purchasing of telecom services, which has the obvious benefit of the ability to buy in bulk and to negotiate the best prices. Furthermore, it simplifies budgeting for telecom expenses.

Thus, while from a business standpoint decentralization has many benefits, it makes a lot of sense to centralize telecom expense management.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom security threats

VoIP Vulnerable to Telecom Security Threats by Peter Verhoeff

While Voice over Internet Protocol (VoIP) is gaining popularity due to its impressive cost savings, there are certain risks associated with this new telephone technology. Businesses that are considering switching to VoIP services, or already using VoIP, should be aware of these risks and prepare to deal with them through the use of call accounting software.

Because VoIP uses packet switching, the same technology that drives the Internet, it faces the same threats, such as denial of service (DoS), hackers and spam. When an Internet server has been compromised with a virus, for example, it can be burdened with such an overwhelming amount of bogus traffic that it becomes unable to process valid requests. This constitutes a denial of service. While DoS attacks are not common occurrences on VoIP systems, their threat is considerable as one such attack could disable an entire communications network. The defense against this threat includes taking protective measures, such as installing a firewall and antivirus software. Call accounting software capable of tracking and recording all call detail records (CDRs) and capable of alerting personnel to any suspicious calls will be of great assistance in finding and eliminating improper and fraudulent use of telecom resources.

Spam has been a major problem for email users. According to one source, the majority of email messages are now spam-related worldwide. Now imagine receiving spurious calls over your voice network. A sizable number of such calls could render a VoIP telephone system unusable. In fact, VoIP systems are much more sensitive to parasitic operations than email, because of the real-time nature of telephone conversations. With email, a delay of a few minutes is usually not a big deal, but on a telephone system a delay of a few seconds will make it almost impossible to hold a meaningful dialog. So, interference with a VoIP system tends to show up much sooner.

Fraud is another problem, with hackers patching into a telephone system and using the company's telecom resources to make long distance calls, which may end up costing the enterprise thousands of dollars a month. While this possibility also exists with more traditional PBX systems, VoIP systems are more prone to this type of crime, because the techniques of Internet hacking are much more widely known.

Even so, with proper precautions, VoIP systems can work well and provide an excellent return on investment. Having a state-of-the art call accounting and telecom expense management system will bring further cost savings and provide the security measures needed for trouble-free operation.

For more information on Call Accounting and Telecom Expense Management (TEM), visit Telsoft Solutions.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.