New Research Project on Telecom Expense Management

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Posted Date: Thursday, June 19, 2008 | Viewed: 66
Posted In Category: Article Directory > Business and Finance > Management Articles
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The economic trend of recent months has corporate executives taking a sharp look at how to cut telecommunications costs.

According to the 2008 Aberdeen Report, The State of the Market, a survey of 4,654 respondents found that the danger of a looming recession was among the top three challenges for the coming year. And, with telecom being among the top three corporate expenses, companies are searching for effective ways to reduce telecom costs, as doing so can have a significant positive impact on corporate profitability. Telecom expense management (TEM) software is designed to help achieve this.

Particular attention is being paid to reducing the cost of wireless telecommunications. In a February 2008 Aberdeen benchmark report, Execute on Wireless Expense Management to Drive ROI, 75% of respondents stated that their corporate wireless costs had increased over the last two years. In addition, while traditional TEM systems concentrated mainly on the verification and payment of telecom vendors' invoices, current functionality includes such things as wireless expense management (WEM), centralized inventory control and procurement, business analytics and tools for negotiating more favorable contracts with telecom vendors.

Aberdeen found that on average telecom costs amount to over 3% of revenues. Best-in-Class enterprises were 60% more likely to have reporting and analysis capabilities. Yet, despite the importance of telecom expense management, a 2007 report by the same group found that the majority of companies surveyed did not have centralized inventory control and procurement, or other telecom expense reduction strategies in place.

Aberdeen believes that corporate pressure to increase profitability will lead to a stronger move towards implementing telecom expense management strategies. These include increased monitoring of telecom expenses, centralized procurement of telecom services and equipment, centralized telecom inventory control, centralized verification and payment of telecom invoices and centralized contract negotiations and dispute resolution. In many cases, new policy will need to be issued and enforced to accomplish these strategies.

Under the title, Slashing Telecom Expense Management in a Looming Recession, the Aberdeen Group is initiating a study as to how companies are going about implementing telecom expense management techniques and is inviting corporations to participate in the study, as detailed in their online Research Preview. (1)

Telecom expense management is a proven technology for reducing telecom expenses and has provided dramatic costs savings and returns on investment (ROI) to corporations that have implemented TEM systems.

Further information about telecom expense management may be obtained from the Telsoft Solutions website at www.telsoft-solutions.com.

Reference:

(1) http://www.aberdeen.com/summary/report/research_previews/5207-RP-slashing-expense-recession.asp




Article Tags: telecom expense management, tem, wireless expense management, wem, telsoft solutions, telecommunications, roi

Author, Peter Verhoeff, writes articles on the business benefits of telecom expense management systems and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

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