The leading objective of Telecoms Expense Management (TEM) is to provide cost visibility and transparency of the communications deployed in a company. Managing telecom spend is essential for businesses to ensure ROI and to stay ahead in their industry. Investing in a TEM solution results in a number of benefits to the organisation, including cost reduction, cost avoidance, credits for invoice and improvements to operational efficiencies.
Despite these relatively straightforward objectives, research over the last 5 years indicates that many organisations are unable to achieve maximum TEM savings with their existing TEM provider. In 2010, the ITFMA reported that only 20% of companies were achieving good results with a TEM provider, with significant reductions in communications spend. 50% were found to have modest results in TEM of around 10-12% cost savings, while the remaining 30% experienced little or no savings.