With telecom and IT spending for data and voice services noted as one of the top line-item expenses for most organizations, it’s imperative that telecom expense management (TEM) is organized seamlessly. In order to manage these expenses with ease, let’s outline the top challenges facing telecom expense management and how to overcome them.
According to an article published by eWeek titled How to Manage Telecom Expenses, there are six things in particular that every CIO should know when it comes to telecom and IT expense management. We have outlined challenges that carry the most weight when it comes to telecom expense management.
ONE. Telecom and IT Expenses Are Complex
In order to manage the full life cycle of each telecom expense, organizations need the resources to do it, with a blend of IT, finance, service providers’ billing procedures and the telecom services at hand.
Technology can be used to help manage everything in the telecom expense life cycle; from your IT inventory and assets to the order activity and invoice processing, expense tracking and validation is critical in order to prevent profits from falling through the cracks.
TWO. IT Spend is Increasing
Telecom and IT spend continues to increase year after year. Data downloads continue to expand as the use of video conferencing, video and cloud-based apps continue to rise, particularly in wireless telecommunications.
Organizations are moving towards unified platforms that combine web and video conferencing, instant messaging, desktop sharing, VoIP and hosted PBX features. As useful features continue to evolve, the cost for unified communication platforms continue to rise. Enterprises are continuing to adopt mobile devices for employees to enable remote collaboration and telecommuting benefits.
THREE. Unavoidable Billing Errors
Human error is an inescapable challenge in expense management not to mention that telecom services are some of the most complex charges, including both tangible assets and intangible services. In telecom expense management, billing elements move, add, change, and disconnect (MACD), requiring reconciliation with billing. Errors are cumbersome and often times unavoidable when employees cannot fully focus on TEM 100% of the time, without distraction.
TEM software eliminates the threat of billing errors and protects accuracy in expense tracking and reporting. TEM offers a team of highly-skilled analysts to perform outsourced telecom audits in order to have a good handle on telecom inventory and further master the telecom expense management process.
FOUR. Decentralized CIO Role in TEM
With a decentralized role in TEM, telecom expenses are difficult to manage with disconnected purchase decisions and limited oversight, resulting in spending 10 to 25 percent more than necessary. Detailed expense reporting and bill validation are seldom in most organizations, and the role of the CIO is essential in determining a quality TEM solution to fit the organizations’ unique needs.
FIVE. Telecom and IT Spending is too Expensive to Ignore
TEM programs deliver savings from four core areas, including:
- Improved decision making
- Expense validation and recovery of billing errors
- Cost avoidance
- Automation of manual processes (invoice processing)
Cost savings occur in labor expenses by automating the manual data gathering, report creation and usage over-payments. All in all, not having a TEM solution is costing you more than you can imagine.
As telecommunication spending continues to grow, organizations can keep a steady hold on these trends with a strategic budgeting plan coupled with advanced TEM services. For more information about Valicom’s TEM products and services, request a demo or risk-free cost savings consultation by clicking the link below.
About the Author: Chantel Soumis
Chantel Soumis brings over a decade of knowledge in workflow enhancement through the use of technology. Chantel studied marketing communications and business administration at Franklin University and proceeded to work in a fast, ambitious environment, assuring client delight in the healthcare and pharmaceutical industries. Passionate about project productivity and streamlining workflows through the use of technology, Chantel strives to inform organizations of Valicom’s advanced telecom expense management software and services by mastering communications and messaging while delivering helpful information and supporting resources.