May 16, 2014 | Written by: Burcu Aldogan
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Telecom Expense Management (TEM) is a mature and widely adopted corporate best practice which can deliver sustained savings of up to 10 to 20 percent, according to a new survey conducted by CCMI, a telecom data and information firm.
The findings are the result of a cross-industry survey conducted by CCMI with senior executives from 100 Fortune 1000 companies. The survey focused on the “current state and future direction of the Telecom Expense Management (TEM) market.” IBM collaborated with CCMI on the survey and report.
More than nine out of ten (94 percent) companies that were surveyed use a TEM solution, and almost two-thirds (62 percent) use three or more TEM vendors to fully meet their management and regulatory requirements. The survey also found that there is considerable churn in the market, where 77 percent of companies reported having changed TEM vendors at some point.
However, the report said that best-practices in TEM demand a move away from siloed processes, and that companies are increasingly centralizing and making TEM a procurement priority. Those enterprises are not only realizing the results they expect from their TEM deployments, according to the survey, but are also exceeding expectations. The majority of enterprises (53 percent) reported savings of 10 to 20 percent from their TEM initiatives.
The IBM Emptoris Telecom Expense Management (TEM) solution is designed to help companies reduce telecommunications expenses by holistically managing the entire mobile and wireline communications lifecycle. The solution automates key telecom processes, including inventory management; procurement and order management; invoice processing, auditing and cost allocation; mobile expense and device management; and advanced business intelligence and reporting.
This CCMI report, entitled Insights into Enterprise Telecom Expense Management, provides a wealth of information on the TEM market and procurement practices around TEM, as well as key measures of success. For further information, download the full CCMI report here.