Software vs Service: What’s Important in a TEM Provider?

The Technology Expense Management Industry Association (TEMIA) recently published some illuminating statistics about the potential savings to be made from an effective TEM program. Their insight suggests that savings of up to 15% in inventory management and 25% in sourcing better contracts can be achieved.

So with such large savings on offer from TEM, what’s important in a provider? In this blog, we’ll reflect upon the benefits that good TEM software brings and ask whether quality software alone is enough. 

TEM Software

In 2017, Gartner revealed that telecom service spend accounts for 15% of global IT spend. It is a complex and far-reaching area and, with countless expense line items to be processed, analyzed and reported, the case for software that adeptly automates the work is obvious. Good TEM software makes it possible for the user to:

• Detect unsanctioned, unused, and inessential services.
• Have complete visibility of duplicate payments and overpayments.
• Set up automated contract management and monitor vendor SLAs.  It vastly helps the user to enforce the terms that have been agreed and use the data for greater negotiating power.
• Set up and sustain an exact telecom inventory.
• View charges at the deepest level of detail.  It is crucial that TEM software enables a user, who has the right level of knowledge, to delve into the detail. This is because the greatest savings are frequently unearthed in the small but recurrent expenses.

What Else is Important?

In addition, first-rate TEM software also needs to look to the future. With the increasing adoption of mobile devices, both company-owned and BYOD, TEM software should be device-aware and offer an optimized user-experience, regardless of device.

Good TEM software significantly streamlines internal company processes, freeing up time and money. To do this, it must integrate with existing applications: your General Ledger, EMM, HRIS, MDM and ITSM systems. Finally, it should look outward too, by being available in different languages and supporting all global currencies. This is especially important for large enterprises using TEM software.

Client Service in TEM

So, with well-performing software in place, why worry about service too? Well, for starters, in 2014, Gartner reported that 89% of companies expected that by 2016, they would be competing mostly on the basis of customer experience.

In fact, when TEM vendors provide their experience and support alongside their software, you’re much more likely to:

1. Actually deliver savings to the business and improve your company's bottom line.
2. Free up your valuable team members to focus on those business transformation projects that you never have enough time for.
3. Eliminate the disruptions caused by service interruptions due to lack of payment.
4. Improve your ability to make decisions based on accurate and timely inventory and expense data.

Many companies can offer superficially exciting TEM software, with flashy dashboards and impressive-sounding analytics capabilities, but it's the level of service, and business stability, that can really make the difference between the various options.

Furthermore, many TEM software vendors are not practiced in back-office processing and payment servicing and cannot provide the benefits that come with a full-service solution. Indeed, with just software, you run the risk of querying disappointing results with your vendor only to come up against a brick wall. Once a vendor has provided just software, they will often see that as the end of their commitment with you, as technically, their agreement has been fulfilled.

Impact of Poor Service

Examining Gartner's 2017 TEM Market Guide, we discussed the recent TEM trend whereby the average contract length remains stable but prices are falling. Indeed, prices have even fallen to unprofitable levels in some cases. This meant that some providers ended up having to deliver a low quality service – not what their customers were promised on sign-up. Ultimately, poor service also meant not getting their expected savings on telecoms spend.

Enterprises need to be careful when choosing a TEM provider, especially if a vendor’s pricing seems too good to be true.  An overstretched vendor runs the serious risk of failing to deliver the service quality and the cost reductions that they may have pledged.

Conclusion

To get the most out of TEM software, you need a service that complements and builds upon the benefits that it provides. This service should come from a team well-versed in telecoms, asset management, and carrier billing - a team that can tackle change management, accounting rules and any obstacles that might be thrown their way.

In a good service environment, you don't need to use your staff to do the heavy lifting - the experts at the TEM provider will deliver the business benefits for you.