Interview with John Adams: Navigating the Future of Telecom Expense Management (TEM)
Andrea Libey: John, thank you for joining us today. As the VP of Expense Management at vCom Solutions, and now SVP of Service Delivery, you’ve had a front-row seat to the evolution of Telecom Expense Management (TEM). What do you see as the defining characteristics of the TEM market as we step into 2025?
John Adams: Thanks for having me. The TEM market is at a pivotal crossroads right now. Enterprises are facing increasing pressure to control their communications costs, which is driving strong demand for expert partners equipped with cutting-edge technology. Gartner’s latest Market Guide for Telecom Expense Management Services really underscores this point. It’s clear that TEM is no longer just about managing telecom expenses—it’s about delivering holistic visibility and actionable insights that empower businesses to streamline operations and reduce unnecessary expenditures.
Andrea Libey: What do you think is fueling this strong demand for TEM services?
John Adams: Enterprises are prioritizing cost control more than ever, but they also need comprehensive visibility into their communications environments to achieve it. The days of manually managing telecom expenses are over. Organizations are looking for providers who can offer not just cost-containment strategies but also forward-thinking tools and analytics. TEM firms that excel in delivering these capabilities—while staying agile to meet evolving needs—are seeing strong demand.
Andrea Libey: How have technological advancements impacted the capabilities of TEM providers?
John Adams: That’s a great question. Advancements like Machine Learning (ML), Robotic Process Automation (RPA), and Artificial Intelligence (AI) are revolutionizing the TEM space. These technologies are enabling TEM providers to execute processes faster and with greater accuracy while delivering deeper insights into expense patterns. Beyond traditional telecom spend, TEM providers are now managing additional categories such as cloud services, utilities, SaaS, and other enterprise expenditures. This expanded scope reflects a shift toward more comprehensive solutions that resonate with modern enterprises.
Andrea Libey: So, would you say that traditional inventory and expense management are becoming less central to TEM?
John Adams: Not at all. Traditional inventory and expense management remain at the core of what we do. However, the industry is evolving to offer a broader range of services. For example, sourcing, procurement, and vendor management are becoming integral to many TEM offerings. By integrating these services, TEM providers can position themselves as strategic partners rather than just service providers. Enterprises now have access to a full suite of tools and expertise to optimize their operations and drive efficiencies.
Andrea Libey: It sounds like TEM providers are playing a much more strategic role in their clients’ operations. Can you elaborate on that?
John Adams: Absolutely. The TEM market’s strength lies in its ability to evolve, turning cost management into an enabler of strategic growth. Enterprises are no longer just looking to save money; they’re seeking ways to streamline operations, enhance decision-making, and unlock new opportunities. By offering comprehensive solutions and leveraging advanced technologies, TEM providers are helping businesses achieve these goals.
Andrea Libey: With the market becoming increasingly competitive, how should enterprises evaluate TEM providers?
John Adams: It’s true—the TEM market is more competitive than ever. Evaluating providers requires a nuanced understanding of their platforms and capabilities. Key factors to consider include data security, geographic reach, operational efficiency, and cost-effectiveness. Enterprises should look for partners who can meet their unique needs and offer scalable solutions that grow with their business.
Andrea Libey: What’s your outlook for the TEM market’s future?
John Adams: The TEM market has a promising horizon. It’s poised for sustained growth, and enterprises of all sizes have much to gain by embracing its evolving capabilities. By partnering with a forward-looking TEM provider, organizations can control costs, enhance visibility, and position themselves for long-term success. As businesses are challenged to do more with less, TEM providers are rising to the occasion, delivering tools and expertise that align with the demands of modern enterprise management.
Andrea Libey: In summary, how would you characterize the TEM landscape in 2025?
John Adams: The TEM landscape is defined by innovation, competition, and opportunity. Enterprises that strategically engage with TEM solutions will not only manage costs effectively but also unlock new pathways to growth and efficiency. It’s an exciting time to be part of this industry.
Andrea Libey: Thank you, John, for sharing your insights. It’s clear that TEM is undergoing a significant evolution, and it remains a crucial part of an organization’s success. I can’t wait to see what happens.
John Adams: Thank you—I’m glad to share my perspective!
vCom “Hot Take” on Gartner® Market Guide for TEM
Gartner has released their 2024 Market Guide for TEM and there are several takeaways:
The Market for Telecom Expense Management Remains Strong – Enterprises continue to feel pressure to control their communications spend and are increasingly seeking partners with expertise and technology to deliver results. Of particular interest is holistic visibility into the full estate to proactively address unnecessary expenditures.
TEM Firms are Expanding Their Offerings – technological advancements in the use of Machine Learning, Robotic Process Automation, and AI to automate process execution and enhance analytics in addition to expanded capabilities of managing Cloud, Utilities, SaaS, and other categories of Spend are the primary areas of focus.
More Comprehensive Solutions are Emerging – in addition to the traditional Inventory and Expense Management, TEM firms are adding Sourcing, Procurement, and Vendor Management. This movement ties in with the expanded service offerings as TEM firms seek to be a strategic partner for their customers.
The TEM Market is highly competitive – as firms expand their offerings and capabilities, the evaluation of firms becomes even more difficult. Choosing a TEM provider requires thoughtful analysis of their platform, including Data Security, geographic reach, cost, and Operational efficiency.
Overall, the TEM market is poised for continued growth and enterprises of all sizes should consider how they can best utilize the enhanced and expanding service offerings to help control their estates and costs.
