Every manager understands budgeting and spend tracking is important to organize business initiatives –across the globe. Spend analytics is indispensable to procurement to assist strategic planning and assessing total expenditure on products and administration.

Procurement strategy aligns with general business landscape enhancements to lower procurement costs and increase productivity. Leveraging spend analytics tools is critical to provide the visibility needed to meet standard procurement strategy.


These factors will contribute to growth of spend analytics:

  • Increasing need for supplier and market intelligence
  • Predictive analytics for educated business decisions
  • Demand for improved management of internal compliance policies and external contracts
  • Rising need for cloud computing technology


To meet the needs of detailed spend analytics within an organization’s IT environment, the analytics application must meet four requirements:

  1. Visibility/Control: reporting chargeback, dashboards
  2. Asset Management and Inventory Tracking
  3. Invoice Processing
  4. Drive Cost Reduction


Identifying and seizing cost-cutting opportunities is a critical piece into generating spend analytics. Like many savings strategies, telecom and technology expense management administers benchmarking to evaluate cost savings opportunities. AOTMP  research presented a potential 10-20% in efficiency gains within a telecom management practice. Benchmarking sets baseline measurements to note potential opportunities for savings –on time, resources and money. Benchmarking benefits include:

  • A baseline for telecom performance to measure bill reconciliation and cost savings
  • Industry standards to level training and performance of personnel
  • Understanding how each vendor impacts your IT environment, how to optimize utilization and reap better customer service
  • Insight into how the IT environment impacts the organization

According to Why Enterprises Should Benchmark Their Telecom Environment by AOTMP, “benchmarking an organization’s telecom environment fosters a more holistic, effective approach to managing the telecom environment and starts enterprises down a path toward a telecom management Center of Excellence – where supporting infrastructure and processes are in place and operating at maximum efficiency. This, folks, is where a paradigm shift occurs in which telecom becomes less of a “cost center” and more of a strategic asset that can be leveraged by an organization to support larger corporate goals.”


It’s always good practice to have goals for pricing and contracts when the RFP is completed. Here are some tips on what to expect from benchmarking specific services.

Local Services: including POTS, PBX Trunks, DID Trunks, Centrex, PRI T-1, Point to Point T-1, Analog circuit, etc., are all dependent on location. With local POTS, Trunks, and PRI’s you can have a nice range within each state of what the pricing would look like on the low and high ends. Some circuits such as Point to Point T-1’s often have too many variables to get detailed, such as, the specific end point addresses, mileage between them, and distance from the LEC Central Office.

Long Distance: long distance service is more of a commodity; pricing typically is based on volume. It is especially important to have solid benchmarks for International and Instate rates. This is where the vendors often have the most variance in pricing.

Data/Internet: Pricing is based on location and discounts are provided with a wide range of variance depending on service, size, and other factors.

Wireless: benchmarking of mobile services such as, Cellular, Data Devices, Aircards, and Telemetry, is typically based off a few metrics: cost per minute, cost per KB/MB, and cost per device. Adjustments in the benchmarked rates may need to be made based on pooled plans with considerations for the number of devices and minutes or data in a pool.


With the growing demand for spend analytics, it’s imperative for organizations to leverage an insightful tool or service to get the most out of their procurement strategies. A telecom and technology expense management application such as Clearview, can provide the insight needed to assist strategic planning and total IT spending assessment. IT expense management can transform your communications infrastructure to:

  • Establish and manage accurate tech inventory
  • Audit invoices
  • Approve invoices
  • Pay invoices (on time)
  • Allocate costs
  • Optimize and pool rates
  • Manage contracts and plans


Valicom Corporation has been managing telecom and technology expenses since 1991 out of Madison, Wisconsin. Over the past three decades, Valicom has deployed a telecom expense management software, Clearview, to assist in controlling TEM costs. Tailored solutions are carefully crafted per partnership to increase visibility over telecom environments while reducing costs.

Contact sales@valicomcorp.com to learn more or visit www.valicomcorp.com.