Telecom Management: The Expense Management Assessment

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Telecom management has many facets, but one of the toughest is managing expenses. The telecom environment is one where users are always finding new ways of communicating; adding cost and complexity to the network, while the older modes of communication are never deactivated since there are always users who like the old ways. There are many vendors in the telecommunications expense management (TEM) space who would like to charge you for the privilege of reducing your telecom expenses or spend. Fortunately, there are some free resources as well.

There are two types of telecom management with regard to expenses: the hard dollar expenses (carrier charges), and soft dollar expenses (organizational efforts). Beyond establishing a reliable inventory and auditing the actuall bills, a network assessment is critical to provide identify savings opportunities. A telecom assessment also generates a baseline against which we can report progress and establishing a confidence level that the organization efficiencies are materializing.

To assess the baseline telecommunications information established in the inventory, you would review the information against several different common variables. These variables might include the following:

• Location type (sales office, distribution hub, production, etc)
• Service type (i.e. POTS, PRI, DIA, MPLS, etc)
• Telecom cost per employee per location
• Carrier providing the services
• Last time a specific carrier agreement was renegotiated

For example, if most sales offices operate with 10 analog lines going into a hybrid key system and a small subset of sales offices have a PRI coming into a PBX, further review of the PRI locations might be warranted. What is different about the PRI offices versus the analog trunk offices. Does one class of offices have any benefits that the others do not? Have these benefits lead to increased productivity or sales results?

Further, if you discover that much of your spend is with the incumbent local exchange carrier ( the former Bell company or “ILEC”) for analog service purchased right out of tariff, you might be lead to a direct saving opportunity to wrap them into a contract or look at some competitive options to the ILEC.

The assessment stage is essentially a self check…”Does the information I have in front of me make sense?” Once you are satisfied with the baseline telecom data set, we are ready to start attacking some of the low hanging fruit.

Article Source: http://depositarticles.com/

In order to conduct an assessment in the most convenient and comprehensive way, consider the telecom management application from my-tem.com. My-tem.com provides a free telecommunications expense management solution to business users.

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