Telecom Expense Management

Telecom Expense Management (TEM) - is a comprehensive solution to minimize expenses in your telecom company. No risk service is offered to your company since the charge for the telecom expense management is a margin of savings achieved by the telecom expense management firm. This charging method is used by most of TEM companies in the market.

Telecom expense management can be categorized as below,

Internal telecom expense management

This approach is used by most of small telecom companies. In this method one or more employees are allocated to monitor telecommunication expenses. Specialized officers in your company should look in to budgeting, accounting and expenses to minimize telecom expenses.

Outsourced telecom expense management

Telecom expense management is outsourced to TEM firm to minimize expenses. As I explained before most of telecom expense management companies offer a NO-RISK service which means TEM firm charge you a margin of your total savings after the telecom expense saving project.

In addition to telecom expense management, TEM companies provide some other services which mentioned below.

• Invoice processing / auditing
• Payment and reporting
• Invoice auditing for contracts
• Validation of approved inventories
• Reconciliation of orders to invoice charges
• Ordering (provisioning and escalation)
• Negotiation of contracts
• Help desk

The method of telecom expense management

Telecom expense management is totally based on activities related to cost audit which finally determine possible savings. Cost auditing can be categorized in to two according to TEM auditing methods used in the industry.

• Manual auditing – The auditor performs all the activities related to research and comparisons to identify possible savings.
• Software auditing – This is the widely used method in the telecom expense management industry at the moment. Specialized software tool is used to analyze all the cost related activities to identify possible savings in telecom expenses.
• Automated auditing – this method is becoming popular in the telecom expense management filed.