Managing telecom expenses effectively is more crucial than ever in global multi-location companies.
Once the backbone of corporate telecom strategies, traditional Telecom Expense Management (TEM) models are now struggling to keep up.
Let’s examine the critical need for a transformative approach in TEM and how to better support companies with many locations.
This article explores the traditional TEM model and reviews the growing inadequacies in a world that demands swift and comprehensive global solutions.
The major shortcoming of no implementation
One major drawback of traditional telecom and IT service models is their failure to cover implementation adequately. This gap results in the added responsibility falling on in-house teams that might not be ready to take on such tasks.
When a company upgrades from old legacy systems, the in-house staff must complete the overwhelming task of integrating new tech for the entire company and its locations. This process becomes more cumbersome and costly because small teams already operating at maximum capacity need to micro-manage external contractors for costly implementation support.
Traditional models fail to provide a seamless, cost-effective solution for integrating new technologies. This disjointed strategy increases operational expenses.
Poor multi-location oversight and support
The traditional telecom and IT services management approach results in poor multi-location oversight and inadequate global support.
When enterprise teams rely on trouble tickets for updates, it stops the flow of information about the status of issues. In other instances, providers and enterprise staff use spreadsheets to manage telecom services across different time zones, languages, providers, and systems. Since this approach requires a human in the loop for accurate updates, it results in outdated details and longer than necessary tech support ticket times.
Old systems aren't designed for the demands of today's global business environment, where fast and accurate solutions are essential. As a result, managers and IT professionals struggle to track tickets and efficiently provide rapid and ongoing helpdesk support.
Telecom expense management providers that don’t service the complete technology lifecycle rely on a limited network of providers in each region—which further exacerbates their ability to support global enterprises.
Clients pay more under outdated models
Outdated business models in telecom and IT services inadvertently lead to higher prices for clients.
Telecom expense management providers with a limited industry presence struggle to negotiate lower rates for clients, leading to higher than necessary service costs. What’s more, they charge for their services, cutting further into the benefit of third-party telecom expense management support. Finally, because so many partners don’t cover implementation, in-house IT teams face unexpected costs.
This model relies on the flawed principle that you must spend money to save money. Clients pay extra, negating the partnership's financial benefits.
Legacy TEM models are designed for the wrong department
Legacy TEM systems, optimized for finance teams rather than IT departments, often target cost savings but place additional burdens on the IT teams they should be supporting.
When enterprises partner with a TEM provider that reduces expenses but requires the IT team to handle all the implementation aspects, it diverts them from their core functions.
This misalignment demonstrates a fundamental flaw in legacy TEM approaches: they keep the finance teams happy by prioritizing expense management instead of optimizing the complete technology lifecycle to improve support, efficiency, connectivity, and cybersecurity.
This neglects the critical role of IT and CIO collaboration in effective technology management.
Transforming TEM from finance-focused to IT-enabled
Complete technology lifecycle management is a game-changing strategy in telecom management. It combines Technology Expense Management with IT Service Management (ITSM), opening the door for a more comprehensive approach.
Traditionally, TEM is treated as a distinct service from ITSM. However, integrating the two through comprehensive telecom lifecycle optimization is the most cost-effective strategy.
When companies balance their attention between cost management and quality support, it leads to a more efficient allocation of resources and a better experience for employees and customers.
Large companies unlock more cost and resource savings by combining TEM and ITSM with other necessary telecom services, moving beyond time-consuming fragmented management.
Conclusion: Advantage transforms telecom expenses
Once effective, traditional telecom expense management models leave gaps adequately covering implementation, leading to increased burdens on in-house teams and higher operational costs.
These models also suffer from poor multi-location oversight and inadequate global support, further straining enterprise operations in a globally connected world. Outdated strategies inadvertently lead to clients paying more for less service, demonstrating a need for a more cost-effective solution that effectively supports all parts of the company and its clientele.
Advantage is the comprehensive solution large companies need for managing telecom, IT, and more. We take a modern approach that covers sourcing, implementation, ongoing IT support, managed services, and lifecycle optimization under one partnership.
It’s a transformative way to integrate TEM with ITSM that aligns with the needs of companies with multiple locations. What’s more, large companies save the most by leveraging Advantage's single-solution partnership. Under this unique approach, clients get free lifecycle optimization because they pass the expense onto providers instead of clients.
Contact Advantage to discover the most efficient and comprehensive approach to enterprise technology management and start saving today!