Most global enterprise organizations use telecom management solutions, or TEM software. Eighty-nine percent invest in telecom management solutions provided by a third party.1
Of these organizations, 67% choose to manage their telecom expenses internally using technology from a TEM provider. Twenty-one percent formally outsource their TEM to a third party.
What’s driving this near-universal adoption? Do these solutions lead to long-term success? Below is Tangoe’s interpretation from our specialized industry viewpoint.
The 2018 worldwide TEM survey published by IDC revealed that the highest-rated reasons for investing in a TEM solution are optimizing expenses and maintaining control of expanding telecommunications expenses.
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Why and How Businesses Adopt Telecom Management Solutions
The 2018 worldwide TEM survey published by IDC revealed the highest-rated reasons that organizations invest in enterprise telecom management solutions:
- Optimizing expenses
- Maintaining control of expanding expenses
- Paying vendors more efficiently
- Allocating expenses to the appropriate department or division
- Validating invoices to avoid misused resources
How do organizations choose the right solution?
When it comes to selecting a TEM provider, organizations clearly subscribe to the maxim “You get what you pay for.” In the aforementioned IDC survey, 42% of respondents identified the same two top factors they considered when selecting a solution: quality of services (like the 5 mentioned above) and quality of the technology platform. Cost of vendor services was a distant third factor.
Organizations prefer to pay more for if it means they get a high-quality product and service. Let’s cover what “high-quality” means – especially in the long term.
The Long-term Value of Efficient Telecom Management
TEM solutions that drive resource optimization are indispensable to large enterprises. Most organizations recognize the biggest savings in the first two years after implementing a telecom management solution. For Tangoe clients and similarly successful organizations, these savings are significant.
After the first two years, opportunities for further telecom cost reduction typically start decreasing – in other words, there’s a point of diminishing returns. So why do most of these organizations continue to work with their telecom management solutions provider beyond this period? Because the long-term control of spending is valued more than initial savings.
Two other long-term benefits of a quality telecom management solution are continuous productivity and efficiency. What business can survive without phone access or reliable network connectivity? By keeping accurate telecom inventory, managing contracts, and analyzing expense data through automation-powered TEM technology, organizations work smarter in several ways:
- They prevent interruptions to telecom services and equipment, which ensures productivity.
- They eliminate manual processes, which leaves more time and money for innovation.
- They correct errors (e.g., in billing or resource allocation) and prevent future ones, which increases financial performance.
When asked to choose their most significant pain point in managing telecom expenses, 32% of respondents of the IDC worldwide survey selected “forecasting future expenses.” It was the most commonly mentioned challenge by a wide margin.2 Accurate forecasting is key to the future success of organizations, as it facilitates long-term planning and growth. Yet many TEM technologies don’t have this capability.
The Best Technology Management Solutions Accommodate Change
Once initial concerns of telecom inventory and cost optimization are addressed, most organizations shift their focus to their future technology. As digital transformation brings new challenges, global enterprises must adapt to maintain their competitive advantage. All their technology management solutions need to keep up with rapid change.
For example, new technologies like IoT and M2M learning, as well as growing services like SaaS, PaaS and enterprise mobility management, provide opportunities to innovate and expand. But those opportunities can be sought only if an organization selects a robust and scalable TEM solution.
The good news is that technology management companies like Tangoe are accommodating new innovations every day. There are select products that manage all types of technology assets within one integrated platform. Tangoe One is among those products, providing powerful technology management solutions for telecom, mobile, and cloud. We give large and global enterprises the tools to optimize for today and innovate for tomorrow.
Tangoe is ready to support your organization. Contact us today.
1,2 Worldwide – Telecom Expense Management Survey – 2018, IDC, April 2018.