According to a recent Transparency Market Research report, telecom expense management (TEM) will be worth a staggering $4.92 billion in the US by the year 2024. Yet TEM remains underutilized in Europe.
The precise reason for this disparity is difficult to pinpoint. What is clear, however, is that, by failing to capitalize on TEM, European enterprise is missing out on a wide range of benefits. Let's look at five of the most important.
1. Reduced Telecom Costs
At the most basic level, TEM services help organizations cut costs and streamline telecom spend.
Gartner estimates that anywhere between 12-20% of telecom charges are made erroneously. This could be caused by anything from misallocated resources to more systemic problems, such as a lack of visibility within the company’s cloud estate. Regardless, in real terms, this equates to tens, even hundreds of thousands of dollars wasted on a regular basis.
In a more general sense, TEM providers deliver a top-down view of an organization's telecom spend. This often includes storing invoices, financial reports, and other relevant documentation within a single, centralized database in order to help decision-makers form a clear picture of their cloud estate. While, by leveraging their expertise and industry knowledge, they’re able to offer actionable insights into the current telecom climate, helping business leaders make better informed decisions which, in turn, enables them to gain maximum value from their budget.
Taken altogether, it should come as no surprise that TEM providers can save companies, on average, 22% on their telecom spend.
2. Scalability and Flexibility
TEM isn’t specifically the concern of companies working in the tech sector. Indeed, anyone who relies on communication as part of their day-to-day operations can reap the rewards of a fully managed TEM service. For that reason, the best providers offer solutions that are both flexible and scalable.
Once they’ve got a complete audit of an organization’s telecom spend and eliminated any residual waste, TEM providers can tailor their service to meet the client’s individual needs. That could include managed mobility services with BYOD (bring your own device) and CYOD (choose your own device) — for those that rely as much on their employee’s smartphones as they do desktop computers — comprehensive document management for multinationals with offices spread across the globe, or anything else in between. Basically, whatever it takes to create a personalized TEM strategy and save business leaders from another unnecessary headache.
There are hands-off, DIY software packages available, too. However, if the vendor is unable to provide any form of guidance to help familiarize businesses with their software, they’re only going to be of limited use. The only other alternative is to continue managing telecom expenses in-house which, as we’ll see throughout this article, is highly inefficient.
No matter how large or small the organization, with digital communications playing such a crucial role in the modern workplace, most businesses will have to deal with a vast collection of invoices, reports, and other documentation every single day. The problem is, these will often originate from various sources, each with its own unique format. Understandably, this makes it tricky to keep track of exactly what’s being spent, where.
Once again, this is where TEM providers come into their own. Processing, converting, and storing all relevant information in a single database, they’re able to give decision makers a wide-angle view of their telecom infrastructure.
At the local level, this enables in-country teams to work faster, without compromising on quality, and manage their specific spend and network environment more effectively. Likewise, at the EMEA scale, regional and global leadership benefits from being able to see the roll-up of spend, carrier relationships, network topologies etc. at a glance, allowing them to make broader regional decisions with greater speed and accuracy.
Combined, this makes it easier for enterprises to simultaneously monitor their expenses and identify waste.
4. GDPR Compliance
Another important aspect of TEM is data compliance — especially following the implementation of GDPR in 2018.
With data from multiple carriers stretching back months, or even years, it’s crucial from the organization’s perspective that decision-makers have uninterrupted access to relevant financial information. Moreover, businesses that collect and store personal details from their customers, need to know exactly where this information is being stored and, more importantly, that their data collection and storage processes adheres to existing legislation.
Failure to do so can result in heavy fines — up to €20 million or 4% of the company’s annual global turnover (whichever is greater). This, understandably, puts GDPR at the forefront of the minds of most decision makers. Managing this without a TEM provider can be extremely time-consuming, not to mention resource intensive and potentially expensive.
On the other hand, a TEM provider with knowledge of the intricacies of GDPR and an innate understanding of telecom expense management best practices, can take this particular weight off the company’s shoulders. Saving both time and money yes, but also offering peace of mind.
While it might not be quite as beneficial in the short-term, perhaps the chief benefit of hiring a TEM provider is the ongoing support they provide.
Organizations aren’t static entities; they evolve constantly. As such, it’s important not only to develop a comprehensive overview of an organization’s telecom estate in the first instance, but throughout its entire lifecycle. In the long-term, this will ensure they can retain operational efficiency while also remaining compliant and fully cognisant of their telecom spend as and when they need to review it.
Additionally, regular monitoring will also better enable them to react to emerging trends within their industry that might have a knock-on effect on their telecommunications spend and make any necessary course corrections should the landscape of their chosen industry undergo any major shifts.
Reduce Your TEM Spend with Cass Telecom
The only TEM provider with service delivery teams across Europe, APAC, and North & South America, Cass offers a one-of-a-kind, fully-managed solution that can help businesses of all shapes and sizes streamline their telecommunications infrastructure.
To discover exactly how much you could save, click on the link below.