Effective Technology Expense Management Can Save Millions
TEM software helps businesses manage IT spend
Choosing the right TEM vendor is important:
- IT spend is among the biggest costs a company must manage
- For most companies it’s among the top three line items
- Manually processing invoices is expensive, and errors are common
- Effective TEM can save the average company millions of dollars a year, and a Fortune 500 company $10s of millions a year
How to choose a TEM solution for your business.
vCom Solutions is the leading IT platform.
Tri Counties is a regional bank serving customers from the Oregon border to Bakersfield California. It has dozens of branches, tens of thousands of ATM machines, and about 1,200 employees.
The bank was founded in 1975, and as it added branches it required additional telecommunication services.
By the turn of the century, Tri Counties was receiving more than a thousand invoices from telecom carriers every month – some of them as thick as a Sunday newspaper.
The Cost of Invoice Processing
Aberdeen estimates that by the time it’s touched all stakeholders and completed the total payables workflow, the average invoice costs an organization $63-70.
If you have 100 invoices each month, you’re spending roughly $80,000 annually just on processing payment. That doesn’t include the time spent analyzing invoices and identifying savings opportunities.
Cost reduction from TEM
Gartner Group estimates that TEM can save a company:
- 5 – 12% Rate Assurance
- 2 – 7% Inventory recognition
- 3 – 8% Contract Management
- 1 – 15% Ongoing audit
- 8 – 12% Usage management
It was the IT team’s job to sift through that monthly pile of invoices to ensure accuracy and flag errors.
And errors were everywhere: overcharges or fees for lines the company had ordered disconnected, among other errors, were common. No matter how many issues the team uncovered, there always seemed to be more.
Tri Counties experience was not unusual. In fact, Gartner analyst Eric Goodness says that from what he’s observed, “12 percent to 20 percent of telecom charges are in error, and 85 percent of the errors are in the carrier’s favor.”
How to choose a TEM provider
Here are high level considerations to keep in mind when selecting a TEM provider. Find the best vendor for you.
How vCom is different
There are many vendors offering TEM. What are the differences, and what considerations are important?
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