A keen focus for corporations today is the foundation for success or failure. Businesses are pulled in many directions and need to maximize their resources. That constraint means separating what they know and do well from what they do not. Most organizations have very little experience in telecom expense management (TEM), which has the potential to reduce their expenses significantly. So why not reap those benefits without creating more work for yourself by handing that task over to a TEM consultant?
Organizations face many challenging business demands. Product lifecycles continually shrink. Price pressure expands as competition now extends around the globe. The number of regulations and their potential penalties has grown. Customer expectations are rising. So, how wisely they allocate their resources is vital to their viability.
Executives know their industry well but get pulled in many other directions. The internet has become a key business enabler and represents an important element in success, so they spend a lot of time trying to exploit it. But as telecommunications services have become broader and more complex, the amount of time expended on managing them has risen.
The ongoing attention becomes time-consuming, so executives search for answers. Should they add personnel to handle such tasks? But once again, such a move pulls them off track. Subject matter experts are hard to find. When a company does locate them, they are expensive, and the hiring process is time-consuming. The manager’s work is not finished once the person is hired. Each corporation runs uniquely, so the new help must be trained and developed in order to become a corporate asset.
Contract help is another option. But these individuals need to take their theoretical knowledge and apply it to the company’s practicalities. Sometimes, the two do not mesh, and temporary employees do not live up to expectations. The end result is executives spending a great deal of time on issues that are not in their wheelhouse.
Hiring a TEM expert can benefit your business in many ways. Since TEM is their core business, their partners invest heavily in this area and bring a high level of understanding to the table for every interaction. As a result, the consultants likely have a broader understanding of the TEM market than your team might because they are trained, experienced, and focused in that area. Telecommunications invoices may seem overwhelming and confusing for your personnel, but a TEM expert sees an opportunity to reduce the firm’s expenses significantly.
Corporations spend about $1.5 trillion on telecommunications services, which make up about 40% of their technology budgets. Because they often do not fully understand the market, these companies overpay for such services. TEM outsourcers identify areas where costs can be reduced, and the results are significant.
In addition, experience is a good teacher, and your TEM partner puts their experience to work for your organization. They have deep technical skills and market expertise to create effective business processes in areas like invoice processing. These service companies have also seen common problems multiple times, so they understand how to address them quickly, giving you more time to spend on other company initiatives.
With a TEM provider in place, organizations gain agility. Nowadays, market opportunity evolves at a lightning-quick pace. If your team tries handling expense management projects in-house, it might require weeks or months because employees are working on other projects or may not have the right experience. A TEM partner, though, has the resources to start new projects right away and complete them efficiently.
Finally, organizations can offload TEM management tasks from internal employees. Businesses have limited resources, and every manager has a finite amount of time. Offloading TEM enables companies to transfer complex telecommunications services contracts to an expert, giving your employees more time to spend on meeting core business needs.
Corporations’ reliance on telecommunication services is now greater than ever. Executives have a limited understanding of what makes it tick, what the business requires in terms of services, what it does not need, and what is a fair price. Turning those tasks over to a third party is a wise decision, one that pays off in many ways. For more information about the benefits of outsourcing your company’s TEM responsibilities, subscribe to our blog.