Selecting the Right Telecom Expense Management (TEM) Provider
According to Gartner, telecom service spend represents 15% of global IT spend. Businesses looking to tackle the management of this complex environment often turn to third-party TEM companies. Numerous telecom expense management (TEM) providers operate within the TEM space, all bringing different configurations of products and services to the table which can make the selection process complex.
A comprehensive TEM strategy is proven to help reduce costs while driving complete control and visibility of your communications spend. A strong TEM plan allows you to holistically simplify the management of your communication services with a focus on optimizing your service costs, centralizing your asset database for improved inventory management, and overall get more from your existing infrastructure.
Understanding the types of TEM companies available to support the scale and scope of your needs can make or break the success of your program. To help aid in the decision-making process, we’ve outlined three common types of TEM service providers and what to consider before making a final decision.
3 Types of TEM Providers to Consider
1. Software Only
In this option, the TEM provider will provide you with the software to order, provision, and manage communications costs. This type of engagement entails that your organization will own the management internally. This software is commonly a SaaS solution and web based TEM tool. This option is ideal for organizations that have the resources and desire to self-manage.
2. Software and Services
With this hybrid model, the TEM vendor provides an additional layer of support with the software. Some of this support includes services like inventory data entry, invoice optimization, or provisioning. This option will allow your organization to have some more flexibility over the services you select and the ability to outsource certain tasks.
3. Fully-Managed Business Process Outsourcing (BPO)
For enterprises seeking a hands-off approach, a fully-managed TEM solution may be the best fit. Organizations can turn to a vendor that offers a full-service engagement and the TEM provider will typically take care of the entire process from auditing expenses to inventory management. The provider functions as an extension of your team so you can focus more on executing on business objectives.
What Option is Right for You?
Every telecom and technology environment is unique and evolves over time. Begin by evaluating your organization’s objectives and bandwidth to dedicate in-house resources. Your selection also depends on the size and complexity of your telecom spend and future plans for your environment.
Consider the scale and wider impact of your decision and look for a partner that can help you develop a comprehensive, integrated TEM solution that will help you maximize savings over time.
MacroNet can assist with your Telecom & Cloud Opex by benchmarking, governing and co-managing your monthly BPO. Our focus narrows the evaluation of your telecom and cloud costs while not reducing infrastructure performance. Trust industry experts with 20+ years of experience governing, designing and implementing telecom and cloud-based infrastructure across 200+ vendors. Contact our team to have an introductory conversation and telecom expense assessment.