What is telecom expense management (TEM) and why should anyone care?
Large companies have for years managed their Telecom expenses an entire industry has grown around the outsourcing of managing Telecom Expenses. DMS now makes this service available to small and medium businesses. An initial assessment will determine if our services will save you money. The goal of our service is to streamline and economize your Telecom spend while at the same time improving the productivity of your organization.
It is no secret that telecommunications represents a major expense for a company of any size. As with any other expense, managing an expense such as telecommunications is simply part of prudent company fiscal policy. For telecommunications expenses it is especially important to manage them closely.
“Why?” you may ask – quite simply because telecom billing is very frequently incorrect.
Generally accepted industry data indicate that as much 10% to 12% of telecomm charges are incorrect. Most (85%) of the errors are also not in the company’s favor, they are in the favor of the telecommunications carrier providing the services.
Common telecom billing problems may include incorrect utilization of telecommunications resources, paying for services that the company is not using, paying for services for employees who have left the company, and paying for services for locations that the company no longer has.
All of this can add up to a lot of money. It is easy to figure out how large a problem a company may face. Simply use the following formula:
Over billing expense = Company Telecom Spend x.10 x.85
No matter how a company slices it, that will add up to a lot of money!
So that answers the question of why manage telecom expenses, but does not really shed any light on what telecom expense management really is.
Telecom expense management is a discipline and set of internal processes to enable a company to:
Understand their inventory of telecommunications services Manage site changes and employee terminations so that they are not being charged for non-existent company resources Reconcile the telecom bills to identify erroneous charges
The TEM process requires that a company:
Collect information about their telecom accounts, locations, and employees Put the data into electronic format so that it is easily managed and maintained Determine if problems are caused internally (the fault of the company) or externally (the fault of the carrier) Enforce existing policies or create new processes to deal with internal issues Obtain credits from telecom carriers for erroneous billing.