What is Telecom Expense Management?

Telecom Expense Management (TEM) refers to a business practice in which a company tries to reduce the amount it spends on telecommunication services. Telecommunication services include landline and cellular phones, data such as internet as well as wireless systems, such as two–way radios. Expenditure on these services varies from company to company with some companies spending far more on them than other comparable companies.

Some companies stick to their old previous telecom service providers and seldom look for renegotiation of contracts. This means that, in light with newer competition and more innovative and latest technology, the costs of providing services decreases for the telecom providers. They may pass on these benefits to new customers and old customers renegotiating their contracts but those companies who keep paying the original rate just because of their fear to change will lose quite a lot over a long period of time. A time comes when the telecom expenses for the companies who have not updated their contracts are a lot higher than comparative companies. 085 nummer aanvragen The companies then decide to bring efficiency in their spending on telecom and use some form of Telecommunications Expense Management.
Companies may carry out Telecom Expense Management internally with company employees using several methods to reduce telecom bills such as detailed monitoring of the telecom invoice to check for any fraud. This approach is taken by several small businesses. The approach taken by larger business includes the hiring of an external Telecom Expense Management firm which independently works to reduce bills by using several methods such as negotiating contacts with the other telecom service providers who are willing to provide services at a much lower cost than the current service provider.

Telecom Expense Management is basically an audit where possible savings are calculated using a variety of means. Some small companies employ manual auditing where an employee manually calculates all costs of the current solution and compares them with the costs of alternative solutions to create a draft of possible savings. Another system, which is nearly always used by Telecom Expense Management firms, includes the use of specialized and usually custom–made software to calculate and analyze a wide range of data which includes, but is not limited to aggregating total expenditure, calculating billed amounts and calculating the amount spent on each administrative level. A few different types of software also include the ability to automatically download and analyze the soft copy of invoices from the servers of the telecom service providers. There is also another approach called in–cycle analysis which deals with the comparison of the billed amount by the telecom service providers and the amount that the in–house audits have calculated. If this figure meets, payment is processed immediately but if there is a difference in the amounts, an enquiry is made before payment in order to resolve the issue.

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