Technology Expense Management (TEM) arose from organizations looking to reduce spend, and they did so by gaining clarity into their assets and inventory.
However, according to Gartner’s Market Guide for Telecom Expense Management Services 2017, enterprises continue to struggle to optimize costs and manage efficiency related to telecom spend. Interestingly enough, Tangoe’s research revealed that nearly 70% of businesses choose to manage their technology expense in-house. The research also uncovered that the primary reason why companies choose not to outsource their telecommunications expense management is because the cost is too high. That is understandable—at first, however; they might be amazed to hear statistics like these:
- Companies with 500 or more employees that fail to adequately manage mobile expenses may be overpaying by as much as 30% according to Gartner.
- In 2017 alone, Tangoe found $235 million in cost savings for its customers by providing a holistic view of enterprise telecom assets.
When organizations handle TEM completely in-house without the support of an experienced vendor, they often wind up saddled with higher cost contracts and terms, incurring unnecessary expenses, and paying for services and assets they don’t use.
Besides saving businesses money, there are at least five additional benefits to outsourcing your IT expense management. Let’s take a quick look:
1. More Time to Focus on Business Goals
It can be very tedious and time-consuming to process and analyze invoices, validate and dispute charges, recover funds, manage inventory, order new services, etc. By outsourcing your expense management, you essentially enhance productivity, since you will reduce and even eliminate many employee tasks, giving them back their time to focus on achieving the long-term and overall business goals.
2. Reduced Labor Costs
While having experienced professionals on staff to perform IT expense management offers convenience, it’s not always the most cost-efficient solution. Employees spend countless hours performing manual tasks, which can be susceptible to error, costing your company even more money. Outsourcing can save businesses money on salary and benefits, and it also eliminates the need for employee training. Additionally, instead of having just one or two employees on your team who can manage IT costs, outsourcing provides your business with peace of mind knowing that employee turnover is a non-factor when it comes to technology expense management.
3. Improved Organizational Efficiency
Recent survey results, published in an IDC InfoBrief, sponsored by Tangoe, titled “Telecom Expense Management: Order in a Complex World”, show enterprises are plagued by multiple challenges in how they manage telecom and mobile expenses. Still, when asked to identify the top benefits they’ve derived from using a 3rd party TEM solution, the number one benefit cited by respondents was improved organizational efficiency. Once the initial optimization and savings are realized, companies continue to use a third-party TEM solution. This explains why IDC found that 89% of multinational organizations have invested in a TEM solution provided by a third party. And this is also why most companies who invest in working with a TEM provider or third-party TEM solution never return to the dark ages of managing their technology assets in-house.
4. Uninterrupted Service
The average enterprise receives more than 300 invoices per month, making it difficult for their Finance departments—and the business overall—to manage, control and optimize all of its associated underlying costs. Instead, organization are inundated with an overwhelming amount of payments to process. With billions of daily data transactions, it’s not uncommon for vendor payments to be paid late, misapplied or even forgotten. A TEM provider optimizes the payment process, ensuring the most cost-effective and efficient payment method is used, so invoices are paid when they should be paid, in the amounts they should be paid and to the right accounts, so organizations never incur late payment or experience discontinuation of service.
5. Access to Industry Experts
An outsourced TEM provider will often begin with building a solid foundation of technology asset records and put a process in place to keep the asset inventory accurate. By centralizing the procurement of equipment and services for any vendor, you can eliminate unnecessary costs, enforce corporate policies and maintain an accurate inventory database. Outsourced providers of TEM can also work with carriers to correct and update inventory while securing owed credits for historical billing.
Additionally, TEM providers are often fluent in global regulations and can manage processing bills from around the globe. Their systems are also designed to integrate billing, inventory, and ordering systems and processes. Because of this integration, finance can easily match billing to inventory, verifying that new services are being billed correctly, disconnected services are removed from billing and service charges are reflected accurately.
Companies are outsourcing their IT expense management for more reasons than just to reduce costs. Having the varied routine and non-critical tasks outsourced allows businesses to utilize employees in a more skillful way. Plus, with a team of dedicated professionals managing IT expenses, businesses have more confidence that they’ll get the best advice and the finest solutions.
Before You Go – Download a Free Resource from Tangoe
Tangoe is the global standard technology expense management, with award-winning solutions for perfecting telecom, mobility and cloud expenses and assets. Our customers trust us to optimize more than $35 billion of technology expenses and manage the lifecycle of more than 10,000,000 technology assets. Tangoe’s outsourcing services provides access to skilled expertise, reduced overhead costs and increased efficiency, so your employees can focus on the business.