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Why Telecom Expense Management Isn’t Dead

Posted on: December 1, 2014

While some may argue that chivalry, rock n’ roll, and even print media are all dead, I can tell you one thing for sure: telecom expense management (TEM) isn’t. According to a recent report from analyst firm Markets and Markets, “The [TEM] market is projected to grow from $1.14 billion in 2014 to worth $3.43 billion by 2019.”

If that figure doesn’t have you convinced, let me tell you this: the day one of your employees racks up a hefty international phone bill that could have been easily avoided, it will be quite clear that TEM isn’t dead. It’s still crucial. And in our mobile-everything world, savvy enterprises are coupling TEM with enterprise mobility management (EMM) for a one-two punch that proves that not only is TEM alive and well, it is the backbone of a smart connected enterprise, and here’s why:

As new technologies are added to the enterprise IT mix – from cloud to mobile – connectivity costs are shifting, but fixed costs are continuing to rise at a steady pace. And, with thousands of invoice formats and employees across the globe, managing fixed expenses is becoming increasingly complex. The increase in mobility and demand for constant connectivity also means that users want to connect their various devices (smartphones, tablets, laptops) to Wi-Fi, meaning that the demand for fixed broadband connections continues to rise, as illustrated in the following graph:

So what does this all mean for enterprises? It’s time to stop separating your EMM and TEM solutions and instead create a strategy that makes them work together. Historically, EMM has been handled by IT, but TEM has not. Today, it’s crucial to make sure that your TEM and EMM solutions are working in union to ensure that you are getting the best deal from your mobile carrier. By leveraging an EMM solution to secure mobile connections, you avoid the costs associated with breaches and/or not remaining compliant. Take a look at how enterprises benefit from coupling TEM and EMM:

As you can see, as costs are tracked (TEM) and risk management policies are put into place (EMM), an enterprise becomes “connected.” So, despite the rising costs outlined in the first graph, an enterprise is able to control spending and minimize risks.

Now that we’ve established why it is crucial to leverage both a TEM and an EMM solution, you might be wondering what to do next.  Here’s a high-level check list of next steps:

  • Confirm the objectives (measurable outcomes)
  • Define the appropriate scope of service for managed services
  • Design the service-delivery model
  • Assess management competencies and design delivery oversight
  • Confirm vendor selection criteria and supplier capability
  • Define demand management processes
  • Develop SLAs, OLAs, delivery metrics, and penalties
  • Negotiate the terms and pricing
  • Develop and execute the transition plan
  • Train delivery team on effective oversight of managed services, supplier performance and demand management

Want to learn more about how to get the most value from your TEM/EMM solutions? Make sure to listen in to our webinar, “How to Achieve Sustainable Value from TEM and EMM Programs”.

$38+
Billion

of spend under
management

7.5+
Million

devices managed
globally

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