TEM is the acronym for Telecom Expense Management. It’s a set of processes, expert analysis and software tools to optimize and control a company’s communications services, infrastructure and associated expenses.
TEM enables enterprises to identify and resolve billing errors, optimize service plans, manage used and unused assets and services, proactively monitor usage, prevent billing overcharges, optimize spending and save money. Often specialists also perform sourcing functions. These specialists will identify service providers; negotiate directly with providers and coordinate with their clients to obtain the optimal combination of prices, contract terms and service levels.
TEM programs provide enterprises improved productivity by controlling and allocating telecom expenses as well as enforcing internal policies governing the use of connected assets and services.
TEM benefits businesses in a number of qualitative and quantitative ways:
Annual savings resulting from cost reductions
- Centralized management of related expenses
- Inventory validation and optimization
- Integrated resource management
- Visibility into key usage, cost and performance information with reporting analytics
- Better insight into future expected communications spend
- Reduced risk with monitored usage and oversight of policies governing that use.
- Support services for mobile and smart devices
- Bill payment and dispute management services
Clients have experienced extraordinary results ROIs, streamline workflows, increase visibility, optimize services, etc. The benefits are real and measurable with: strong ROIs, streamlined workflows, increased visibility, optimized services and more.
About five years ago, clients began to ask questions about cloud, Internet of Things (IoT), and data center initiatives. These initiatives impact TEM, and our firm, Network Control, has developed new capabilities and offerings to meet clients’ needs. Projects became more complex as we helped clients prepare and plan for the migration to newer technologies.
As the level of client complexity grew, demand for guidance within TEM engagements has also increased. Clients began to ask for objective strategic assessments of their current state and roadmaps for their future. TEM morphed into something more sophisticated and complex. Engagements require specialized knowledge and expertise, not just software. The benefits an enterprise obtains by engaging in a TEM initiative have also grown.
TEM clearly provides significant benefits to companies. As needs have changed, complexity increased and potential risks (financial, legal and security) have grown. The TEM industry has evolved. Telecom Expense Management is now Technology Expense Management. It will continue to grow and evolve as new technologies are introduced. Clients’ complex network demands dictate more comprehensive solutions to better manage and control the inventory and expenses for telecom and related technology areas.