Whether you’re choosing a telecom expense management partner for the first time or looking to switch, the sheer number of considerations can be overwhelming. But like any major strategic decision, it’s essential you get it right.
The telecom expense management marketplace is packed with vendors offering similar services. For the uninitiated, it can be difficult to tell dedicated, reliable partners from the rest.
Why is it difficult to find a TEM vendor that provides clear value to my business?
Why is There a Lack of Clarity?
What you need from a provider depends on what you want to achieve. This could be cost savings, visibility, control, or something else entirely. It can be difficult to understand the value a vendor will deliver because some focus too much on communicating technical information rather than results. This misalignment makes it difficult to see the benefit a partnership could bring, causing decision paralysis.
It can cause you to choose or stick with a sub-par partner simply because you don't have the time or resources to match your needs with the TEM provider that is most capable of providing the most value to your organization. Here’s how to overcome it to ensure you get maximum value from your telecom expense management provider.
What Causes Decision Paralysis?
Information overload is one of the chief causes of decision paralysis, but it’s not the only one.
Three-year minimum contracts are the norm in a telecom expense management services agreement, with many relationships extending well beyond that. It’s a significant upfront commitment, and this can give some organizations pause for thought – especially if the provider includes early termination fees in their contract.
Then there’s the time, cost, and evaluation process. It can take up to a year from submitting your request for proposal (RFP) to signing your contract and months to familiarize yourself with the provider's software and processes.
Any disruption has a financial impact on your organization. However, in our experience, sticking with a partner who doesn’t deliver value costs more in the long run.
4 Tips to Help You Find the Right Telecom Expense Management Partner
Preparation is key to overcoming decision paralysis. It's easier to make an informed decision if you know what you need from a telecom expense management provider, which services to prioritize, and how to identify viable partners.
1. Define Your Requirements
Before you even begin to look for a telecom expense management partner, take the time to establish your requirements, challenges, and goals.
Ask yourself what you need from a partner. Is your biggest concern cutting costs and eliminating unnecessary expenses? Do you need help negotiating with carriers? Or do you need help maintaining an accurate inventory of your telecom technology and services?
Clarifying your requirements helps you determine whether you need a software platform, fully managed support, or a combination of the two. So, when it comes to the tender process, it’s easier to distinguish between suitable and unsuitable partners.
2. Set Clear SLAs and Measure Progress
Service level agreements (SLAs) are an integral part of your telecom expense management contract. An SLA consolidates all relevant information about your contracted services, activities, and response times in one document, as agreed between you and your partner.
Establishing SLAs helps you set boundaries, responsibilities, and expectations with potential partners. This definition helps avoid hidden costs and measure performance to ensure your vendor meets the expectations outlined in your contract. In other words, SLAs hold partners accountable.
An unwillingness to commit to your SLAs could be a sign that a prospective partner isn’t as reliable as they claim.
A good SLA includes:
- Clear descriptions of the services provided
- Outlines of each party’s duties and responsibilities
- Agreed metric for measuring success
- Details of any penalties for contract breaches
3. Conduct Research and Assess Value
We see it all the time. Telecom expense management vendors promise you the world but fail to deliver when push comes to shove.
Some providers exaggerate their capabilities to get you to sign on the dotted line – especially where global delivery is concerned. Others couch their services in deliberately misleading terms. For example, saying comprehensive invoice audits are part of their management service without clarifying that they’re only available on request.
Scrutinize potential partners to ensure they can deliver on their promises. Independent reviews and reports from firms like Gartner can also help you cut through the noise and assess providers based on their value to your organization.
4. Focus on Financial Stability
Given that you'll be working with a provider for at least three years, we recommend thoroughly evaluating their financial stability before committing.
It's not always easy to tell if a provider's struggling financially. But the last thing you want is to be forced to change your telecom expense management provider because a seemingly secure company goes bust.
Red flags to watch out for include significant debt, private equity-driven short-term exit strategies, or a lack of transparency around their financial health. If a potential partner isn’t upfront about their financial position, consider taking your search elsewhere.
We also recommend:
- Reading independent industry reports, such as Gartner, Forrester, or IDC
- Conducting a due diligence review
- Examining their credit history
- Reviewing their financial statements
The Right Partner is Essential
Ultimately, the best way to avoid decision paralysis is to choose the right telecom expense management partner.
The ideal partner combines:
- Industry expertise
- Technology
- Experience
- Strong carrier relationships
- Deep understanding of your business and processes
This helps them deliver reliable, high-quality expense management services year after year.
Topics: TEM, Vendor Management
