Frequently Asked Questions

Glossary of ePurchasing Terms

Telecom Expense Management

What is Telecom Expense Management?

Telecom Expense Management (TEM) is the activities to control telecommunications costs. Telecommunications costs include Fixed Line, Mobile, Data, and Unified Communications (a catch all that covers Instant Messaging, IP Telephony, Video Conferencing, and other Over-The-Top applications). TEM component services include inventory, invoice and spend management, dispute management, sourcing, procurement, and business intelligence.

Why do telecom expense management?

TEM reduces telecom costs by more than 30% in the first two years after a business implements a service (source Gartner, G00316758). Recurring cost reduction beyond year two are achieved through: exiting redundant and zero use service, enforcing contract rates in billing, reducing non- policy and maverick use.

Why do telecom expense management for large organizations?

TEM reduces telecom costs by improving telecom assets management. Inventory reports identify where employee exits result in unmanaged charges. Spend management assigns service costs to cost centres. Advanced sourcing establishes lower cost contracting.

Why do telecom expense management for small businesses?

TEM reduces telecom costs by managing maverick and non-policy use. Highlighting where excessive used and personal use of devices has happened.

How much does telecom expense management cost?

TEM vendors charge through supplier commissions or upfront customer fees.

  1. Supplier commissions are often based on savings identified through a sourcing or cost reduction project. Commissions can represent up to 25 percent of any saving identified (but not necessarily realised) with savings usually representing 30% of total spend.
  2. Upfront customer fees are often based on the number of services and employees. Kansoly simplifies the fee structure charging a fee related to the service purchased rather than business telecom spend.

How to evaluate telecom expense management services?

TEM vendors should be evaluated on their capability to deliver the component services: inventory, invoice and spend management, dispute management, sourcing, procurement, and business intelligence. Best of breed solutions offer a single portal that integrates to suppliers and business HR and AP systems.