Among the many ways corporations are cutting costs, telecom costs may well be overlooked. Because the cost of telecom services has seen some dramatic drops in recent times, the thinking is that savings in that area would be negligible. However, because of the tremendous expansion in new types of services, such as mobile and high-speed data lines, total telecom costs have increased for most enterprises, which has made telecom expense management (TEM) more important than ever before.
Keeping track of telecom expenses is no mean task. For example, in a recent report, Hewlett Packard was said to receive 2000 telecom invoices per month, adding up to a $250 million annual cost. Manually checking all telecom invoices was a virtual impossibility and would have been extremely costly in terms of manpower, due to their volume and complexity. However, periodic spot checks revealed frequent billing errors, such as continued billings for lines or equipment that had been ordered disconnected.
Company officials reasoned that even greater savings could probably be obtained by investing in a TEM system and they were right. After deploying a centralized telecom expense management system, the company saved over $3 million in the first year alone.
There currently are about 70 telecom expense management service providers in the US, according to Gartner, representing a market of approximately $500 million per year. Due diligence should be exercised in choosing a TEM vendor, considering factors such as capability, reputation, support options, customer satisfaction, price and fulfillment of corporate needs.
Telecom expense management software has call accounting as one of its underpinnings, which compares billed calls against actual calls, as measured by the corporate PBX system's Call Detail Records (CDR). Mobile devices can also be tracked on a similar basis. To be effective, the TEM system should be centralized for the entire enterprise, including branch locations. TEM systems also can be interfaced to the company's Accounts Payable and General Ledger software, which facilitates bill payment.
There are several varieties of TEM systems. One way is to get an in-house system. This will give the company full control, but the drawback is that skilled personnel are required to maintain the system and to take care of periodic upgrades. Another method is a password-protected Web-based system. A major advantage here is that executives can access the system from their desks or when traveling, to get the reports they need. In addition, the TEM provider takes care of the system's maintenance and upgrades.
The third method is complete outsourcing of the TEM system. This approach is gaining popularity. While the most costly, the major advantage is that the corporation can draw on the TEM provider's expertise. This expertise can be invaluable, for example in negotiating the most favorable rates for the company with telecom carriers.
For more information about 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.
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