A solution that provides a central database where, enterprises can easily manage telecom services as well as assets, is termed as telecom expense management.
The current telecom expense management (TEM) competitive landscape is mostly made up of TEM solution providers focused on the upper end of the market (companies with over 5,000 employees).
Forrester estimates that “billing errors average 5% to 12% of ongoing telecom services budgets.” The majority of middle market companies spend anywhere from $150k to $5M in annual telecom expenses. 22% savings on these expenses would equate to $33,000 – $1,100,000 in annual savings for these companies.
The research conducted by AOTMP also reported the following top telecom priorities for SMBs:
* Reduce telecom cost (62%)
* Learn/implement best practices (57%)
* Establish greater control over wireless costs (49%)
* Centralize telecom environment control (48%)
* Secure support for increasing staff to manage telecom (24%)
* Increase budget for more technology solutions (18%)
AOTMP further report “savings for SMBs with a TEM program with a focus on the TEM program savings activities are positioned to gain 22% greater savings as opposed to those without a TEM program.”
- READ MORE: Only 7% of businesses are on the right…
Most mid-sized organizations have not deployed either internal or external telecom expense management (TEM) programs, usually because they do not have the trained staff to do it. The bill for a business with 50 connections
often runs to as many as 150 pages. It’s hard to see the wood for the trees…
One likely reason for the higher prices paid by SMEs is that the network operators do not publish all available tariffs for business customers, and what tariffs they publish are difficult to find and even harder to compare. As an individual, you can browse phones and tariffs at the click of a website; as a business customer, you have only a limited range of plan prices available online, and the details get more sparse as the number of connections you require increases.
The business plans you can see on the operator’s website won’t necessarily include the cheapest for your pattern of usage. Moreover, the plan details are often spread across many different web pages and interleaved with information on the services offered, relevant and helpful in itself but distracting if you are aiming to compare tariffs.
Only 7% of businesses are on the right contract
Billmonitor analysis shows that savings do not come from one simple and easy-to-learn trick, but from diverse and hard-to-predict sources.
For micro SMEs, some 69% of savings come from reducing the cost of tariff and bundles. For SMEs with 10 or more connections, some 49% of savings are from reducing tariff and bundles and 10% from increasing UK data allowances.