Telecom Expense Management (TEM) and Wireless Expense Management, which is better: software, SaaS, managed services, or outsourcing?
Which will produce more savings? Let’s first look at some considerations for each approach, then I will provide an answer.TEM and WEM Software is Best
Managing the program internally with software means that your organization has direct control over people staffing project, salary costs, benefits, retention programs, office space, supplies, IT support and ongoing training. There are no third parties interpreting your needs or managing the program on your behalf. Over time, these employees gain unique knowledge of the enterprise and your telecom network. They will understand your organization’s needs and its plans for the future.
Managing the program internally also avoids mark-ups for the costs of having a third party manage it. Finally, telecommunication bills often contain sensitive information. In many cases, security can be an overriding factor in the decision to manage TEM internally with software because it allows organizations to keep sensitive information “in-house” under direct control.
Outsourcing TEM and WEM is the Best Approach
TEM outsourcing specialists are able to achieve benefits from economies of scale and lower costs by amortizing expenses over a large number of clients. Firms that specialize in TEM programs can create programs for recruiting employees with specialized training and career paths to retain employees. Specialists are able to develop unique expertise and knowledge of each carrier’s procurement platform, billing system, and audit claims process. Top achievers can focus on more challenging projects. These firms can draw from a larger pool of employees compared to a firm that is managing its internal program. This enables TEM specialists to adapt as work changes ensuring that clients have the right amount of staffing for their needs during different stages of the program.
Benchmarks can promote efficiency with measures for client implementations, strategies to convert paper to electronic billing, the volume of bills processed, data accuracy, audit claims and savings. TEM specialists are also able to apply what they learn from each client’s project and share best practices across all their clients.
Which Is Better, TEM Software or Outsourcing?
Selecting the best approach for your organization often depends on two factors: resources and corporate culture.
As one IT Director for an electric utility said, “If you already have a skilled team, why give the savings to an outside firm?” However, TEM software will only enable you to automate a portion of the work. Many firms find it is difficult to find people with the right mix of knowledge of telecom, IT and finance to staff a TEM program internally.
Another consideration is corporate culture. Organizations often have a corporate culture or executives that favor outsourcing non-core functions or managing everything internally. Sometimes the preference to manage things internally comes from security considerations. This predisposition to outsource or manage things internally will make it difficult to fund a project that does not fit the corporate culture.
Before you spend too much time comparing costs, look at the resources that you have to support TEM software and your corporate culture. This will make it possible to determine quickly which approach is better.
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