5 Ways of Reducing Telecoms Costs through Telecommunications Expense Management
Many companies are disappointed by the results of their telecommunications audit. Savings from telecommunications audits are usually not long term (for good reason, see this article for more information).Most telecom audits that fall short of expectations, do so because of 4 easily identifiable reasons related to the firm carrying out the audit function. These include:
A short term focus on Cost Savings
Many telecommunications expense management providers focus on short term results. Their interest lies in making as significant a saving as possible for their client early in the relationship. Whilst this can be a good thing, if the short-term focus overrides the need to identify why these inefficiencies are present in the first place, then this focus is misguided. Any savings made will reduce if the underlying cause of these errors is not addressed, allowing the initial errors to continue. This can be solved by creating a focus on eliminating errors through effective systems and forward thinking strategies. These strategies cover much more than just telecom costs, looking at an overall strategy involving procurement and policy setting, inventory management, usage, service efficiency, and analysis.
A lack of Independence
There are many telecommunications audit and consulting providers that lack true independence from telecommunication carriers. Such firms are often only interested in creating new business for carriers, and may receive commission from carriers for any new business driven their way. In effect, there is a complete lack of transparency in this situation, and such firms lack of true independence must bring in to question the effectiveness and true efficiency of their service.
A lack of Attention to Detail
Many audits can lack efficiency and effectiveness, especially if the Telecommunications Expense Management is driven to be a self-funded model (refer to this article-link to above article). In this instance, there is an inherent need for errors to occur so they can be picked up and thus lead to savings. If there is a focus on the amount the audit can save, there may be a broader focus that lacks attention to detail within the audit itself and the root cause of the errors may be overlooked in favour of results.
A lack of true Expertise
Many firms lack a true understanding of the intricacies of telecommunications, and the important role telecommunications will play in a fast changing future. If firms are reliant on outdated technology when providing TEM services, this can create problems in that it can set telecommunication standards, procedures and systems for a company for many years ahead. In effect, it can lock a company in to an outdated, expensive and long-term contract for telecommunication services.
Be aware that unless your telecommunications audit services address these issues, you may be missing out on significant savings. More importantly, your telecommunications operations may lack true efficiency and effectiveness.
At Telco Management, we aim build a long-term relationship with our clients. We define a clear telecommunications strategy and policy prior to any engagement, and are independent of any carriers. Our role is to reduce the total cost of telecommunications ownership to our clients, and we do so by focusing on cost/benefit analysis of telecommunications services. With our knowledge of emerging technologies, including machine-to-machine, unified communications and cloud services, we can ensure your organisation also benefits from the latest available technologies. Combined with our expertise in telecommunications, and our belief in old-fashioned service, we offer a managed telecommunications service unlike any other. To discover the difference we can make in your organisation, contact us to learn how we can help.