6 Common Telecom Expense Management Myths Debunked

If you’re reading this, you’re likely considering how telecom expense management can supercharge your business when managed properly, and sink it if handled poorly. Taking your time to understand the importance of TEM solutions is crucial, but the information you’ve heard so far may not be accurate. 

Misconceptions are rife around any topic online, and when beliefs based on false facts spread, companies may hinder themselves from reaping the benefits of advanced telecom management software. So naturally, understanding TEM's true nature becomes vital as businesses strive to control their costs. 

In this blog, we’ll clear up six prevalent misconceptions about telecom expense management, revealing the real advantages and features of effective solutions. From the idea that TEM is only about cutting costs to the belief that companies can manage all their expenses independently, we’ll debunk these myths and more. Ultimately, we want to demonstrate how TEM can significantly improve operations for teams of all sizes, leaving you feeling prepared to find the right solution.

What Exactly is Telecom Expense Management?

Starting with a summary of the topic can help eliminate any initial misunderstandings and set an informed foundation before dispelling false notions going forward. In short, telecom expense management (or TEM) is a comprehensive approach to managing an organization’s telecommunications services and related costs. It encompasses the entire lifecycle of telecom services, from procurement and provisioning to usage and payment. TEM solutions cover a range of activities, including:

• Invoice management to automate the process of receiving, validating, and paying telecom invoices.
  
  
• Expense optimization by reducing billing errors that occur with manual payments.
  
  
• Contract management for businesses to comply with previously set terms and facilitate better negotiations during renewals.
  
  
• Inventory management to keep track of all telecom assets, including devices, lines, and services, helping to prevent redundant or underutilized resources.
  
  
• Usage monitoring to help identify and curb unauthorized or excessive usage, leading to significant cost savings.

By delivering these services and more, TEM solutions empower businesses to take control of their telecom expenses, enhance service delivery, and support strategic decision-making processes​. This isn't just about reducing costs; it's about empowering your business to make positive changes to its telecom infrastructure with confidence.

Sorting The Facts From Fiction in TEM Services:

1. In-House Management is an Effective Option

Many companies believe managing telecom expenses internally is completely doable. Why waste your budget on external support or software licensing when you can handle it alone? The truth is this approach often falls short due to the expertise required for sustainable management. In-house teams may be able to handle basic tasks, but might lack the in-depth knowledge and resources needed to uncover potential savings.

Working alongside specialized providers delivers significant advantages. TEM services provide software that includes advanced analytics, comprehensive audit tools, and industry knowledge in-house teams simply don’t have access to. Partnering with a TEM provider, like Sakon, means businesses can achieve more savings and improve overall telecom efficiency, two initiatives that are challenging to accomplish alone​.

TEM providers and their software also offer an objective quantitative perspective, providing unbiased recommendations and strategies that align with the company's best interests. This external viewpoint is crucial for identifying possible errors in existing workflows and implementing best practices that might not be evident to those within the organization. 

While in-house management might seem sufficient at first, partnering with an experienced TEM provider opens the door to more cost-cutting and financial opportunities. 

2. Saving Money is The Only Positive Impact

Telecom expense management may sound entirely focused on improving a business's bottom line, but its positive impacts go far beyond reducing budget strain. Effective TEM focuses on operational efficiency by streamlining telecom processes, aiding with accurate billing, and optimizing service usage.

The financial benefits of TEM are well-known, but data safety is a bonus. Having a holistic system monitoring organization-wide telecommunications helps improve compliance with corporate policies and regulatory requirements, reduces the risk of penalties, and enhances security by ensuring all telecom services are properly managed and accounted for​​. 

Companies enhance their strategic planning just by leveraging intelligent telecom management software. Reporting provided by TEM solutions offers insights into usage patterns and trends, helping businesses forecast future needs and make data-driven decisions. This proactive supports the overall growth of an organization, going beyond the initial goal of saving money. 

While cost savings are the first and foremost goal, the broader benefits help companies scale their reach without getting bogged down with manual financial tasks.

3.  TEM is All About Software

Having powerful telecom expense management tools at your fingertips is a good starting point, but knowing their full potential is necessary for a team to optimize programs effectively. The right TEM provider shouldn’t only offer advanced software for tasks like electronic invoice reading and automated asset auditing — they need to bring more to the table. Bringing invaluable industry expertise and support sets a solution apart, reducing worries of obsolescence and relying on outdated documentation for internal training. The right partner provides strategic advice, a wealth of easily accessible resources, and continuous optimization of their product to meet evolving business needs​.

Telecom expense management experts understand the nuances of telecom billing and usage patterns, which vary between providers and regions. Collaborating with a well-informed communication services team helps businesses save money while remaining in compliance with industry standards. 

This combination of technology and human expertise enables TEM providers to deliver comprehensive solutions that address immediate cost-saving opportunities and long-term strategic goals​.

4. Expense Management Tools are Too Complicated to Implement

It’s common to assume that telecom expense management software is challenging to integrate with existing systems, but in reality, modern TEM solutions are designed to be user-friendly and straightforward. These tools often come with intuitive interfaces, comprehensive support, and step-by-step guides for a smooth transition. 

The best TEM providers understand the importance of minimizing disruption during implementation. A simple onboarding process, staff training sessions, and ongoing technical assistance help address issues that may arise​ and break down the barrier between adoption and daily use. 

Similarly, most of the top TEM solutions are cloud-based, which simplifies the integration process by eliminating the need for complex on-premise installations. An off-site approach allows for seamless updates and scalability, ensuring your TEM system grows with your business without requiring additional investments or technical overhauls​.

5. Working With a Third-Party Provider is an Unnecessary Security Risk

When you think about your company's cybersecurity health, sensitive data breaches are a reasonable cause for concern. Still, more prevalent threats can sometimes come from within your own organization; internal activities like expense theft and invoice fraud can run rampant when automation or software-backed information isn’t utilized. 

When a company relies on disparate data, from emails to in-person hand-offs of expense details, human error or malicious changes can go undetected. 

TEM services often feature vetted security practices that in-house teams may not have the resources or expertise to implement. Regular security audits, real-time monitoring, and automated processes promptly detect and mitigate potential mistakes before they escalate. Bringing years of experience in handling telecom data securely, the right TEM partner can provide software purpose-built for maintaining the integrity and validity of invoices and transactions.

6. TEM is a One-Time Project

Maybe your organization has already found a telecom expense management solution in the past and believes that, once the software is up and running, you can focus on other matters. In reality, legacy systems slowly but surely fall behind and become a problem for any growing business, which is typically only addressed once a noticeable mistake pops up. 

Effective TEM requires ongoing attention and effort. Telecom costs and usage can change frequently due to various factors, such as new technologies, changes in service providers, and evolving business needs. A one-time audit might help you find some immediate savings, but those costs can creep back up without continuous management​.

Think of TEM as more of a journey than a destination. Regular monitoring and periodic audits are crucial for keeping telecom services cost-effective over time. Ongoing oversight helps spot new savings opportunities and ensure compliance with existing agreements. It also means staying on top of major industry changes and regulatory shifts that could affect telecom expenses.

By treating telecom expense management as an ongoing process, you'll avoid unexpected costs and inefficiencies arising from one-and-done options. It's about maintaining those initial savings and continuously finding ways to improve. While a one-time effort might give you a quick win, adopting a continuous TEM strategy will ensure sustained benefits and greater operational efficiency for your business in the long run​.

What Can Sakon Do for You?

Working with the right partner for your telecom expense management needs is crucial to sorting through misconceptions and getting to the bottom of what your organization requires to start slashing costs.

Sakon stands out as a trusted TEM provider, offering solutions that combine advanced technology with expert insights for unmatched ROI. With continuous cost savings as a primary goal and tools to improve alignment across finance, accounting, and IT staff, you can build a cohesive view of how your telecommunications could improve.

Ready to separate fact from fiction in your telecom expense management? Get in touch with Sakon today to explore how your telecom operations can flourish and drive meaningful savings for your business.