BlogYou’re Managing Your Communications Spend All Wrong

You're Managing Your Communications Spend All Wrong

February 29, 2016, Communications Lifecycle Management, Expense Management

Worldwide telecommunication spending is projected to reach $1.6 trillion by 2018, according to Statistica, but many organizations have a hard time managing communication spend. The problem is only going to intensify as communication spend takes up more of the company’s budget, so it is important to identify the issues as soon as possible and get a handle on telecom management before it consumes more company resources. Some companies may incorporate telecom management practices to help handle expense problems, however these approaches may not be covering the full communications lifecycle.

Common Telecom Management Mistakes

Every department in an organization leans heavily on certain telecommunication approaches, whether they are using smartphones when they are out of the office or communicating with customers through voice over IP (VoIP). However, one of the biggest telecom management mistakes companies make is having a silo mentality for costs. IT might handle the procurement and deployment process for telecommunications solutions, but multiple departments are responsible for telecom usage.

Another significant mistake is a lack of visibility into communications spend. Organizations might know their overall numbers, but they are unable to attribute those costs properly to understand where the budget is spent. When multiple services and solutions contribute to the overall telecommunication bill, many companies simply pay the invoice and never delve deeper into determining whether the bills are accurate and appropriately priced.

Improve Communications Spend Management

Process automation helps address some communication spend management issues, especially for billing and reporting. Instead of manually tracking down bills, entering them into the system, and getting the payment handled in an appropriate timeframe, an automated approach handles everything with minimal input. Thus, valuable organization resources and human capital can be used for other tasks, such as negotiating better deals with telecom providers and following up on inaccurate billing. Telecom expense management (TEM) can help with some parts of this process, such as staying on top of billing, but handling all aspects of communications spend may require a different method.

Implement a Holistic Approach

Communications spend goes beyond the basic cost of each telecommunication service. Organizations also need to look into the usage of telecommunication tools and assets, shared services management and other communications spend factors. For instance, a communications lifecycle management approach goes beyond tracking telecom expenses and takes a holistic view that modern organizations need. This type of management starts from the beginning at the procurement process, and takes an organization completely through to the payment cycle.

This approach provides greater visibility into every factor impacting communications spend so organizations can better manage their resources. All spend data is aggregated throughout the organization, eliminating silos that make it difficult to understand the telecommunications landscape. Businesses use this information to understand the value gained from their communications spend and better their direct budget allocation. They have better control over communications spend because the entire process is handled properly from end to end, instead of the responsibility being spread to multiple departments, teams or individuals.

Communications spend captures a significant amount of an organization’s attention due to its overall impact on the budget, but its current telecom management strategies may not approach the problem correctly. A holistic approach with communications lifecycle management gives companies a big picture view of communications spend, so they have the control they need over essential business expenses.

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