Download Comprehensive Technology Expense Management Program

Telecom Expense Management Overview
Fortune Consulting 2015
1
What is Telecom Expense Management?
Telecom Expense Management (TEM) is a specialty financial discipline involving
the application of systematic analysis to telecom service orders, inventory and
bills regarding telecom services.
Source -Wikipedia
Fortune Consulting 2015
2
Industry Profile

The Providers / Suppliers

Over 70 different TEM suppliers

The top tier amount to about 21 providers
 Breakdown of services

37% of enterprises use their TEM provider for both fixed and wireless

40% of enterprises use their TEM provider only for wireless telecom management

24% of enterprises use their TEM provider only for fixed telecom management
Source: 2011 AOTMP Industry Report
Fortune Consulting 2015
3
Most Common Selection Criteria and Core TEM Activities

Invoice Processing

Reporting & Analysis

Auditing

Optimization

Asset / Inventory Mgt.

Service Inventory Mgt.
Source: 2011 AOTMP Industry Report
Fortune Consulting 2015
4
Enhanced TEM Activities

Policy & Governance

Help Desk Mgt.

Mobile Device Mgt.

Risk Mgt.

Security

Sourcing & Procurement

Service Ordering

Change Control

Contract Management

Etc.
Fortune Consulting 2015
5
About Fortune Consulting

Fortune provides a wide range of IT/Telecom Consulting Services

Currently 50 % of our Practice is dedicated to Customized Expense
Management Programs

Product set varies by client – financial vs. technical activities

Small/medium enterprise focused


Some spending < $500K annually on services under management
TEM not necessarily our first or only client engagement
Fortune Consulting 2015
6
Why TEM – Per Our Clients

They don’t trust the service provided to engineer, implement or bill properly.

Can’t afford the distractions necessary to effectively deal with the administrative burdens
associated with IT finance management.

Most can’t afford internal talent to do everything the supplier should but won’t do.
 A soundly managed TEM can be a cost effective alternative.

The desire to aggregate service providers/invoices under one entity, not necessarily one of the
incumbent service providers.

They want an independent providers of expense management services, will assure rate
accuracy and contract compliance without obligation to the underlying service provider(s).
Fortune Consulting 2015
7
Anecdotal End User Experiences

What they don’t know does hurt them
 Not sure if they have contract or not knowing the terms
 Don’t understand the entire cost base

Lack of time and or experience to address unpredictable outages and/or requests
 How to effectively escalate to resolve outages
 Unfamiliar with the current state of technology
Fortune Consulting 2015
8
The TEM Challenge – from our perspective

A properly managed standard TEM program diminishes its value over time


As costs are stabilized and brought into line, TEM becomes just another expenses item ripe for elimination
Our answer: CTMS - A holistic approach that broadens our support capability thereby allowing us to
maintain/enhance our value to the client


Pain Point focused – if they have a specific one we focus on that
Various product verticals






Strategy & PM support
Engineering, Design & Optimization
Financial Management, Cost Containment & Recovery
Service Level Requirements, Definition & Compliance
Productivity Tool & Monitoring Services
Mobility Application Development, Deployment & Management
 Across multiple disciplines
Hardware
Software
Network
 Infrastructure
 H/R
 Other



Fortune Consulting 2015
9
Where do we think TEM will be in 5 years

For end users it will still be required






While some service providers are getting better at invoicing, most are not.
The larger carriers are looking to implement “tariff protections” from historic audit
liabilities, driving the increased need to stay on top of invoice accuracy.
Multiple suppliers/invoices will continue to be the norm in most environments.
Reduced internal headcount will drive supplier consolidation along with the desire to
identify a common management point of focus.
Change control will still be a critical component in managing inventory and cost of
ownership accuracy.
For service providers


The field of players will consolidate.
Need to continually reinvent the offering to stay in the game.
Fortune Consulting 2015
10
Fortune Consulting
 Providing IT and Network Management Solutions since 1992

Engineering & Design

Procurement & Contract Negotiation

Implementation Planning & Support

Project & Financial Management

Audit Services and Contract Compliance

TEM/TLM/CTMS
Fortune Consulting 2015
11
George Giardelli
President, Fortune Consulting
[email protected]
www.fortuneconsulting.com
732-483-2180
Fortune Consulting 2015
12