Organizations utilize a shared services model to leverage economy of scale when it comes to company-wide resources, such as communications systems. Instead of each department utilizing its own set of services, shared services models offer a centralized approach to managing business resources. Processes are standardized across the organization, individual departments don’t have to manage procurement, deployment and maintenance, and the IT budget doesn’t take the full hit for software used throughout the entire business. Businesses can realize significant cost savings with this configuration, with Fed Tech Magazine estimating federal agencies could save $28 billion through shared services.
However, communication spend can be difficult to track without a proper shared services management solution, as a centralized system can lead to a lack of accountability and ownership. Here are seven ways shared services management and TEM cut down on organizational costs.
1. Improved Management of Communication Spend
Organizations gain visibility into communication spend by tracking services usage, chargeback, and other critical metrics in each department. This configuration provides an equitable way of managing spend instead of making assumptions or failing to accurately track costs at all.
2. Ability to Automatically Allocate and Correlate Spending
Organizations put a substantial amount of resources into tracking expenses, but shared services management can handle this automatically. Spending allocation and correlation can be handled based on usage, department size, and other factors without a large resource investment.
3. Transparency and Accountability With Analytics
A centralized system provides deep insight into organization-wide data. Analytics can identify major cost centers, areas for improvement, and other factors essential for managing communication spend, telecom expenses, and other expenses.
4. More Visibility and Insight to Comply With Budgeting Practices
Organizations can track budget compliance across all departments with visibility that makes it easy to control spending in critical areas. If a budget issue occurs, an organization can pinpoint the source instead of spending valuable time tracking cost problems.
5. Ability to Understand True Tech Cost
Technology solutions may sound as though they have a significant cost until that cost is distributed based on usage across the entire organization. Shared services management gives stakeholders visibility into the actual costs to the company spread across multiple departments instead of treating it as a single department’s cost. Once costs are properly attributed throughout the organization, the IT department has a better chance at being treated as a profit center. Ziff Davis reports up to 80 percent of the IT budget goes into supporting and maintaining technology throughout multiple departments, which can have a big impact on its bottom line.
6. Easily Shared Costs of Communication Services
Many departments and teams use the same communication solutions, but costs are not fairly spread throughout the user base. Shared services management shares the costs based on actual resource usage, instead of assigning it to a handful of teams or a single department.
7. Alleviation of Labor Costs and Time Associated With the Creation and Distribution of Bills and Reports
Finally, organizations can get mired down in managing billing and reporting, which makes it easy for expenses to slip through the cracks. A centralized system automates many parts of this process, reducing resource costs.
A shared services management model makes a lot of sense for an organization seeking an efficient way to handle communication solutions across the entire company. Costs are lowered through a combination of increased visibility into actual costs, automated billing and reporting and deepened analytics that provide stakeholders with critical information. As more organizations consolidate their services into a single, centrally managed department, they should consider implementing shared services management.
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