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Telecom Expense Management Outsourcing

Globalization has brought about innovations in information and communication technology, especially data-driven concepts and technologies such as Big data, Internet of Things, cloud platforms, machine learning, artificial intelligence,and robotic process automation.

Since the start of Covid-19, 85% of executives said their businesses have somewhat or greatly accelerated the implementation of technologies that enable employee and customer interaction and collaboration—in a matter of weeks vs. months or even years. (McKinsey)

To keep up with the fast-paced and highly disruptive market, organizations are banking on leveraging agile operations, process improvement and process upgrades for digital transformation.   

89% of companies say the pandemic has shown a need for more agile and scalable IT in order to allow for contingencies. (Dell Technologies)

The role of technology has been emphasized due to market catalysts and disruptors such as globalization and the pandemic. Adopting a digital-first approach is required since there is an increased integration of smart devices such as smartphones, computers, laptops and tablets and novel strategies such as bring your own device (BYOD) or choose your own device (CYOD).

The preference of a diversified workforce enforces increase in the adoption of the unified communication platforms and cloud-based applications. This overall digitization drives the maturity of digital transformation.

Organizations are looking for innovative ways to monitor and manage their resources. To effectively support for in-company and client mobile and cellular communications, the adoption of enterprise communications, telecom-related and cloud-based services is expected to continue to grow.

In fact, the global telecom services market size was valued at USD 1,657.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.4% from 2021 to 2028. 

(Grand View Research)

The increase in the preference and integration of smart mobile communication devices, telecom services and (BYOD) or choose your own device (CYOD) strategies also means an increase in the volume of devices to monitor. To address the need to control, optimize and streamline wireline and wireless service costs or expense,Telecom Expense Management (TEM) has flourished.

Telecom Expense Management is a key business strategy in managing existing communication systems. The primary goal of Telecom Expense Management is efficiency through cost management. It has expanded to cover digital systems in place such as voice platforms or collaborative messaging and data systems.

Telecom Expense Management is critical at all levels of the business be it be C-suite executives and management, Finance, Procurement and Inventory management.

Amid the COVID-19 crisis, the global market for Telecom Expense Management estimated at US$2.8 Billion in the year 2020, is projected to reach a revised size of US$5.2 Billion by 2026, growing at a CAGR of 10.4% over the analysis period. (Research and Markets)

Large multinational corporations (MNCs) with more than $1 billion in revenue and complex telecom expense management (TEM) needs represent almost two-thirds (62%) of Gartner’s TEM-based end-user inquiries. According to a Gartner end-user survey, enterprises are utilizing TEM to take control of cloud, mobile, wireline TEM and emerging Internet of Things (IoT)/machine-to-machine (M2M) inventory and costs. (Gartner)

According to Gartner Research, organizations can save up to 30% or more during the first year of utilizing a Telecom Expense Management (TEM). The ongoing value of optimization, inventory, cost, and analytics create this savings. (Radius Point)

The concern of managing telecom expenses in-house poses lack of control in the business and the business processes. There is loss of control and visibility. It also distracts from the core functions. These force organizations to rethink and review and revamp their current operations and budget allocation. Thus, companies consider partnering with Telecom Expense Management vendors to improve the bottomline.

Telecom Expense Management Outsourcing is contracting the services of a third-party vendor to manage and evaluate the telecommunication expense strategy. The services offered by these vendors are as follows:

  • Inventory management
  • Audit and Optimization
  • Invoice Processing
  • Sourcing
  • Procurement
  • Invoice management
  • Expense management
  • Reporting and analytics

Outsourcing telecom expense management allows for automated software for seamless and efficient billing reconciliations, reports generation and expense management, among others.

When considering Telecom Expense Management Outsourcing, it is important to consider the capabilities of the vendor.

It is also critical to determine your needs, resources and budget.

Do you need a comprehensive or fully managed telecom expense management plan? Do you have several data, telecommunication, or collaborative systems in place that need proper budget allocation, monitoring, inventory management? Upon identifying your needs you can now choose from the proper vendor to partner with –one that only offers software “software as a service” or SaaS, one that produces data-driven monitoring reports, one that one who offers a fully managed telecom expense management plan.

It is essential that your Telecom Expense Management provider offers 24/7 help desk support. This personalizes the customer experience and lessens the response time for queries related to telecom expense management.

Also, operating controls and systems of your Telecom Expense Management vendor should be equipped with proper security and management and, most importantly, effectively protect the interests, confidentiality and data of our clients.

The perfect offshoring team provider understands the responsibility of properly securing confidential or private data entrusted to them. Compliance can range from auditing processes, operational controls, industry-leading digital security systems such as user desktop monitoring to cybersecurity software implementation. Compliance to security, availability, processing integrity, confidentiality, and privacy should be met by offshore teams in all aspects critical to the business.

With Telecom Expense Management Outsourcing you can focus on core business processes. There is complete visibility and control at a lower cost.


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