Telecom expense management (TEM) is the process of managing and optimizing the costs of telecom services, such as voice, data, and wireless. TEM can help businesses save money, improve efficiency, and gain visibility into their telecom usage and spending. However, TEM is not a simple task and it requires careful planning, execution, and monitoring.
In this post, we will discuss 3 common mistakes that businesses make in TEM and how to fix them.
Mistake #1: Not having a clear TEM strategy
One of the biggest mistakes that businesses make in TEM is not having a clear strategy that aligns with their business goals and needs. A TEM strategy should define the scope, objectives, roles, responsibilities, processes, tools, and metrics of TEM. It should also address the current and future telecom needs of the business, such as scalability, security, mobility, and compliance. Without a clear TEM strategy, businesses may end up wasting time, money, and resources on inefficient or unnecessary telecom services.
How to fix it: To develop a clear TEM strategy, businesses should conduct a thorough assessment of their current telecom environment, including inventory, contracts, invoices, usage patterns, and service quality. They should also identify their business requirements and goals for telecom services, such as cost reduction, performance improvement, or risk mitigation. Based on this analysis, businesses should design a TEM strategy that outlines the best practices and solutions for managing and optimizing their telecom expenses.
Mistake #2: Not auditing telecom invoices regularly
Another common mistake that businesses make in TEM is not auditing their telecom invoices regularly. Telecom invoices can be complex, confusing, and prone to errors. According to our experience, up to 15% of telecom invoices contain errors that result in overcharges or incorrect charges. These errors can be caused by various factors, such as billing mistakes, contract discrepancies, service changes, or fraud. If not detected and corrected in time, these errors can cost businesses unnecessary telecom expenses.
How to fix it: To avoid paying for erroneous or fraudulent charges, businesses should audit their telecom invoices regularly and thoroughly. They should verify that the charges match the contracted rates and terms, that the services are actually used and needed, and that there are no duplicate or unauthorized charges. They should also dispute any errors or discrepancies with their telecom providers and request refunds or credits. To make this process easier and more accurate, businesses can use automated TEM software that can validate and analyze telecom invoices and flag any anomalies or issues.
Mistake #3: Not optimizing telecom contracts
A third common mistake that businesses make in TEM is not optimizing their telecom contracts. Telecom contracts are legal agreements between businesses and their telecom providers that specify the rates, terms, and conditions of the telecom services. Telecom contracts can have a significant impact on the telecom expenses of businesses, as they determine how much they pay for what they use. However, many businesses fail to negotiate or review their telecom contracts regularly and end up paying more than they should or getting less than they need.
How to fix it: To optimize their telecom contracts, businesses should leverage their bargaining power and market knowledge to negotiate the best possible rates and terms with their telecom providers. They should also review their contracts periodically and compare them with the current market rates and trends. They should look for opportunities to renegotiate or renew their contracts when they expire or when there are significant changes in their telecom needs or usage. Additionally, they should monitor their contract compliance and performance and ensure that they receive the agreed-upon service levels and discounts from their providers.
Conclusion
TEM is a vital process for businesses that want to manage and optimize their telecom expenses. However, TEM can also be challenging and complex, and businesses may make some common mistakes that can undermine their TEM efforts. By avoiding these mistakes and following the best practices and solutions for TEM, businesses can save money, improve efficiency, and gain visibility into their telecom usage and spending.
