Businesses worldwide are expected to spend more than $1.3 billion on enterprise telecommunication services in 2017, according to research from Gartner. Much of this spend is essential, as globalization takes hold and workplace trends like the implementation of telecommuting policies progress. However, many of the organizations contributing to this market growth are bound to waste at least small portions of their investments. Why? Ineffective telecom procurement and expense management practices.

Firms cannot simply set and forget the first telecom services packages they encounter. They must carefully consider the available options and continually track their products post implementation to ensure full return-on-investment realization. How can modern companies effectively carry out these tasks and adopt telecom services with optimal functionality and minimal budgetary impact? Telecom expense management software facilitates such practices, empowering organizations of all sizes to take control of the product selection process and implement services that work within their operations and adhere to established fiscal requirements. Here three ways in which TEM solutions make this possible:

Streamlining and rebalancing the RFP process

Ideally, the request for proposal process should allow customers to easily court possible vendors and select the solutions that work for them, without much work. However, this sort of advantageous outcome does not always materialize, CIO reported. In many cases, businesses looking for new backend systems often end up making concessions on product and service requirements, or simply paying too much. This unfolds because the vendor selection process is so tedious that customers make their final decisions before receiving even a ballpark implementation fee. Here, they lose all of their leverage and are doomed to pay whatever amount their final telecom vendors bring to the table.

TEM solutions streamline the RFP process by allowing businesses to easily view multiple proposals within a single portal, essentially rebalancing the selection equation and requiring service providers to come to the table with not only their best products but also their best prices.

Simplifying contract negotiation

Contract negotiation is notoriously difficult and for good reason – both vendors and customers strive to strike the most beneficial deals, leading to long agreement-review sessions and lengthy back-and-forths. Unfortunately, even after all of this work, many businesses end up signing on the dotted line for less-than-ideal terms. Why? With the RFP process over, most firms yearn to move to the implementation phase as quickly as possible in an effort to capture increased operational capabilities and achieve ROI with little delay. This desire eventually outweighs contract negotiation objectives, as the process of crossing the t’s and dotting the i’s wears on. In the end, service-level guarantees go unaddressed, along with latency and pocket-loss parameters and other small yet important details, TechTarget reported.

With TEM solutions in place, information technology teams can dissect telecom contracts in an efficient manner and lean on their TEM vendors for support and advice. This kind of negotiation approach facilitates the creation of advantageous agreements that hold service providers accountable.

Supporting effective service management activities

Businesses’ enterprise telecom needs change over time. For example, fewer than five years ago most chief technology officers considered connected fixtures associated with internet of things gimmicky and unusable in both professional and industrial environments. Now, firms worldwide are expected to go live with more than 3 billion new IoT devices in 2017 alone, according to research from Gartner. Modern companies must be able to adjust accordingly to these technological sea changes in order to maintain their competitive advantage. This necessitates immense flexibility within the procurement department, especially where telecom service contracts are concerned.

However, businesses using traditional telecom service management strategies often struggle to rejigger their existing offerings to comport with new technological needs, leaving many lagging behind their competitors simply because they find it difficult to renegotiate their telecom contracts or source new partners that can meet their technological needs.

TEM solutions are the answer here, as these platforms simplify telecom management activities. Organizations with these systems in place can evaluate their services and pursue new offerings to keep their operations up to date and competitive.

Enterprises looking to spend their money wisely and gain an advantage when negotiating for business-grade telecom services must look into adopting TEM platforms. These solutions truly empower customers, lending them the visibility and efficiency necessary to negotiate sound telecom contracts and procure the services they need. Here at Teligistics, we produce industry-leading TEM software that facilitates these capabilities and more, allowing some of our clients to achieve cost savings as high as 50 percent. Is your organization interested in learning more about Teligistics and TEM solutions in general? Contact us today.