A big part of ever-increasing telecom bills can be attributed to contracts that don’t reflect actual needs and current usage. Many contracts are based on rules that apply to old technology and past consumption needs. Technologies like smartphones, VoIP, VPN, and video changed the game. Yes, we’ve got greater options for communication, but these options come with new requirements like Quality of Service (QoS) agreements and high service fees that push costs up.

My advice for keeping your organization’s telecom costs down:

• Know the real impact of current and upcoming technologies on network services, bandwidth, and consumption patterns. You and your counterparts can outsmart price increases with a TEM solution’s reporting capabilities. A good solution will identify different pricing arrangements for the same item or high costs for common services purchased from competing suppliers. CFOs should work with CIOs and procurement to proactively evaluate broadband, mobility services, and video conferencing.
• Look at your contracts! Scope out items with consumption increases. In many cases, contracts will not reflect competitive rates for increased volume. They may also fail to address newly added features. Also, have managers insert technology ramp-up and ramp-down clauses when replacing obsolete items.
• Review your telecom ordering process. In many organizations, ordering is decentralized. Perhaps regional offices are not placing orders with carriers that you just negotiated better rates. Also, it is common for large organizations to have multiple contracts where they are paying different rates for the same service. Be sure that all orders reference the updated contact. A good TEM solution can unify the ordering process to save time and money.