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Telecoms Expense Management (TEM)

If you haven't done so already, invest in telecom expense management (TEM) software/services; if you are using TEM, investigate potential refinements.

Source: JE Pultz, How to Significantly Reduce Networking Costs, Gartner, Inc., March 2010

This service is an extension of the one-off telecoms audit but undertaken typically on a monthly basis and can include any or all of the following elements:

  • Monthly reconciliation of Suppliers invoicing and telecoms billing;
  • Monthly reconciliation of asset inventories;
  • Monthly reconciliation of user details;
  • Provision and management of an on-line system to present and analyse financial, asset and user management information;
  • Provision and management of costing models to provide full transparency of service costs and the constituent service elements which make up those costs, so as to provide stakeholders with an understanding in terms of what they can do to influence cost and savings. Such models can also support and enable accurate Internal Recharging and Budgetary Forecasting;
  • Monthly analysis of variable costs with appropriate reporting and alerts to key stakeholders, identifying issues and opportunities so as to enable them to take appropriate action to manage and reduce costs;
  • Call Management, encompassing the identification of any irregular and inappropriate usage patterns and enabling the identification of opportunities for Least Cost Routing and Tariff Optimisation.