Given the number of telecom and network services that a typical company uses and the hundreds or even thousands of monthly invoices that are received, it is next to impossible to maintain good visibility into these business expenses.
What is Telecom Expense Management?
Telecom expense management refers to a service adopted by enterprises for optimizing telecom costs, handling inventory management, bill payment, procurement, invoice management, and other functions carried out on a single platform. Telecom Expense Management has become an essential practice for enterprises irrespective of their size, operating across any business domain/industry. The increased requirement for efficient telecom expense management practices is one of the transforming trends in the market coupled with the expansion that has been observed in the business telecom infrastructures in the past few years.
Telecom expense management is used by the organization to reduce the cost of managing telecom infrastructure. It helps enterprises to streamline their operation; therefore, growing demand for the telecom expense management market. Enterprises are experiencing a large volume of bills, and contracts, which led to the rising adoption of telecom expense management to better manage expenses, thus boosting the growth of the market. Telecom expense management provides flexibility, reduces time, improves efficiency, and reduces operational costs, which directly impacts the growth of the telecom expense management market.
These are expenses that, according to IDC Research, are usually the second-largest indirect expense within a company, and the third or fourth-largest overall!
Europe Telecom Expense Management Services
With the rapid adoption of mobile phones, enterprises are finding it difficult to control the expenditure that is associated with these devices and allocate costs effectively, as the companies use multiple carriers using different types of invoicing formats. Due to this, organizations are focused on solutions that are able to control the cost associated with telecom services. TEM solutions have enabled organizations to cut down on telecom services costs by providing organizations with cost-effective solutions such as inventory management, usage management, dispute management, and others
On top of this, TEM solutions enable enterprises to have a complete understanding of the amount that an enterprise spends on its telecom services. The understanding is critical as organizations are better informed about the expenditure that is incurred and the ways in which this expenditure can be reduced. TEM solutions such as reporting and business management and usage management provide a holistic view of expenses that are incurred over wire-line, wireless, mobile, and mobile, and mobile communications costs by an average of 10-40%, depending on the customer’s previous contract negotiations.
Maximizing Savings with TEM Solutions in Europe
Furthermore, another major driving force behind TEM solutions is the difficulty faced by organizations to control communication costs, due to a lack of transparency in invoicing methods and clarity in what they pay for.
Most companies don’t have the internal resources (trained staff, expensive software tools) to constantly monitor and select the best telecom deals. In addition, choosing the most appropriate telecom vendors requires a large investment of employees’ time. The resulting lack of visibility into the communications landscape makes it difficult for senior management to make optimal business decisions.
Does your company know whether or not these expenses are justified?
