Telecom expense management (TEM) doesn't have to disturb or slow down your enterprise. But it can be a daunting task. Getting buy-in from internal teams isn’t always easy. Especially when you get service providers involved.
43% of IT executives see TEM as a necessary evil, which doesn’t sound encouraging. Try bringing in outside expertise, and you’ll likely get pushback from your people in-house. See if any of this sounds familiar…
“How much hassle will this cause?”
“How long is this going to take?”
“Why do we need to outsource this? We’ve got the software do it ourselves.”
Is there any truth to these concerns? Let’s find out.
TEM isn't as Disruptive as You Might Think
Many think TEM starts with an arduous task: building an exhaustive (and exhausting) physical inventory of all your assets. But if you work with a good service provider, they won’t spend months tracing and recording all the circuits that enter every one of your buildings. If they’re doing it right, they won’t need to create a physical inventory at all.
Instead, they’ll get a solid picture of your assets from authoritative data sources. Then they’ll find the biggest billing mistakes and overcharges as soon as possible. So, you can start saving money right away, with minimal disruption.
A provider that’s worth their salt will also manage the whole lifecycle continuously. Everything in your inventory will always be accurate and up to date. This means you won’t keep having to take on huge, business-disturbing clear-outs every year.
Avoid Problems by Playing the Long Game
When choosing a vendor, it’s easy to be dazzled by bells and whistles. But flashy dashboards and "smart" features aren't proof of established, ongoing success. TEM is a long-term investment, so make sure your vendor can deliver.
We’ve seen a lot of vendor churn year after year, and we don’t expect that to change. Mergers and acquisitions are common. And if your vendor goes bust or gets bought out, it’s going to disturb your service.
You can avoid this by asking smart questions before making your choice:
- How long has the vendor been in business?
- Are they financially stable?
- What are research firms like Gartner saying about them?
Choose a vendor with longevity, and you can rest assured that TEM won’t cause you trouble down the line.
The Dangers of DIY
If you’ve got the right software, why not do all this in-house? It’s a thought that’s probably crossed your mind as you’ve assessed your options. Team managers might have pointed this out to you as well, nervously thinking to themselves, “Isn’t TEM my job?”
But do you have enough in-house resources to do the job thoroughly? You’ll need to process thousands of invoices, audit every line item, keep your inventory updated, and much more besides. And even if you do have the resources, is this the best use of your people’s time? They know your business and communications strategy – instead of managing billing, they could be driving growth and innovation.
A DIY approach might be tempting. But if you don’t have the right resources, it’s better (and less disruptive) to get it done by outsourced professionals. And managers needn’t worry about their jobs. The role of a quality service provider is to work with them as partners, not replace them. They’ll still be part of the TEM process. But they'll have more time freed up to focus on other strategic, business-critical activities.
What Does Good TEM Implementation Look Like?
Here’s an example of TEM done right. A global biotech company needed to optimize its TEM operations in APAC, Latin America, and Europe. So, it turned to Cass for support.
To get things working more efficiently with minimal disruption, we staffed every region with local project teams. These teams work to the region’s local time, speak its languages, understand its cultures, and have experience with its local carriers. In less than nine months, the teams identified and tagged 98% of the company’s circuits.
Having access to regional resources that work the same hours has made the whole operation much faster. Invoicing now only takes two days in the Americas and Europe, and three in the Asia-Pacific. And in just over a year, the company saw $2.43 million in cost reductions, with a 165% ROI.
The Verdict
So, how disruptive is TEM? Not very disruptive at all – if it’s done well. Put it in the hands of seasoned specialists, and it will be a fast, smooth process.
