Businesses worldwide spend trillions on enterprise telecommunications technology, cultivating advanced communication infrastructure designed to support device-wielding, data-hungry professionals. Sadly, many modern organizations do not effectively monitor their telecom budgets. Researchers for the International Data Corporation found that almost one-third of global companies struggle to anticipate future communication expenses, while more than one-quarter cannot effectively validate telecom bills or maintain accurate service inventories. Another 24 percent of enterprises use faulty charge-back processes that lead to further dysfunction. Businesses that leverage problematic telecom cost management workflows of this kind often find themselves spending as much as 18 percent more on communication tools and backend services than is necessary, per survey data from the Aberdeen Group.
How can firms in this unfortunate position regain control over their telecom costs and make up budgetary ground? Telecom auditing is among the most effective solutions, as it enables information technology stakeholders and other decision-makers to gain an accurate picture of all existing technologies and services, and the associated billing environments. With this insight in hand, business leaders can right-size their telecom workflows and lay the foundation for cost savings, while continuing to support the enterprise users of today.
Unpacking telecom auditing
The concept is fairly self-explanatory. The telecom audit process involves reviewing active products and services to ensure they not only meet organizational needs but are also deployed in a cost-effective manner. The actual mechanisms of telecom auditing have evolved over the years. For a long time, businesses engaging in this practice focused on telecom bill reconciliation, including identifying billing errors, and hired third-party specialists to look over their contracts and pinpoint discrepancies. Over the past decade, telecom expense management platforms have taken the place of external consultants, lending organizations of all sizes the power to assess their own communications infrastructure and billing environments in an automated fashion. For instance, an estimated 94 percent of all Fortune 1000 companies use such solutions, according to research from IBM.
That said, the underlying principles of telecom auditing have not changed much. Ensuring that all carrier invoices match active contract terms remains an essential aim. The granular activities associated with telecom auditing have remained critical, too. Savvy businesses still seek to dissect telecom expenditures and identify specific equipment and services that are unnecessarily driving up costs. Of course, these and other salient telecom auditing practices now unfold with the assistance of bleeding-edge TEM technology.
Understanding the importance of telecom auditing
Why are some of the most successful organizations on Earth investing in TEM solutions and devoting internal resources to telecom auditing? The reasoning is easy to understand: There are massive amounts of money at stake. IT and telecom spending accounts for around 19 percent of the average operational budget, per research from Deloitte. Unfortunately, a significant portion of this amount is superfluous due to billing error. In fact, the International Data Group estimates that between 10 percent and 20 percent of all enterprise telecom charges are the result of flawed invoicing. By simply reassessing telecom expenditures and the agreements and service plans that propel them, companies can save big.
While most of the businesses that embrace telecom auditing and implement the tools needed to facilitate it do incur some costs, these expenses are insignificant when compared to the potential savings generated by effective communication spend management.
Facilitating telecom auditing with Teligisitcs
There are numerous TEM solution providers on the market that claim to offer technologies that support modern telecom auditing and control costs. However, few deliver on this promise. Teligistics is among the most proven firms in the TEM marketplace, delivering tried-and-true products that make an impact. Our telecom expense and asset management platform supports effective telecom auditing by facilitating complete backend transparency via automated error tracking and reporting features that allow companies to right-size their communication infrastructure and make sure it aligns with core organizational goals. The Teligisitcs TEAM solution also boasts high-quality software architecture meant to function within digital-first enterprises focused on IT efficiency and data security.
Is your organization interested in learning more about our TEAM solution and how it can facilitate telecom auditing? Connect with us today to schedule a demo and get more insight into how our technology generates real return on investment.