Enterprise information technology infrastructure buoys modern business. To find success in today’s marketplace, organizations of all sizes must have access to effective and dependable digital resources — most notably, telecommunications products and services. Firms worldwide collectively invest more than $1 trillion in telecom tools per year, per researchers at Gartner, as such solutions can “bind” disparate operational workflows together in the era of globalization. However, the return on investment is typically low here. Why? Poor vendor performance management processes.
A good number of companies leverage the set-it-and-forget-it approach, lending telecom vendors license to operate with little accountability. This leads to backend dysfunction, operational disruption and revenue decline.
Understanding the risks
Telecom providers supply hardware, software and services that facilitate mission-critical workflows. International law firms leverage sophisticated IT framework to support attorneys collaborating with clients across the globe. Logistics companies depend on expansive internet of things infrastructure to ensure shipping accuracy. Online retailers employ robust backend setups to serve shoppers who use desktop portals and mobile applications. All of these organizations and more rest on the shoulders of telecom technology and without it, they grind to a halt. This stoppage, called downtime, can have an immense impact on the bottom line. In fact, analysts for Gartner estimated that the average organization loses around $300,000 per hour of downtime. Even small issues — a moment of lost connectivity, for example — can deplete company coffers.
It is therefore critical that businesses stay on top of their telecom vendors and ensure these external parties fulfill the agreed-upon contractual terms. But how?
Embracing vendor performance management
Effective vendor performance management is the ideal option for reducing the likelihood of telecom performance issues that could lead to downtime. This methodology encompasses a whole host of best practices, including data collection and analytics, governance via periodic performance assessment and action planning. When businesses can review telecom vendor performance insights and chart out their network development and maintenance activities accordingly, they reduce the likelihood of downtime and lay the groundwork for telecom ROI and the revenue growth that typically follows.
Vendor performance management with Teligistics
While organizations can certainly cultivate the data-gathering and contract-oversight mechanisms needed to facilitate effective telecom vendor performance management, this work often requires immense internal investment. Simply put, there are better options out there in form of third-party telecom expense management technology. Teligistics is a leader in this space, developing and deploying TEM systems that give businesses of all sizes the ability to track telecom provider performance and ensure their backend infrastructure meets operational demand.
Is you company interested in learning more about how our TEM platform can support vendor performance management? Connect with us to schedule a demo.