A Beginner’s Guide to Telecom Expense Management (TEM)

When corporations first faced an explosion of communication tools like phone systems, data networks, and multiple service providers, TEM surfaced as a specialized practice to help businesses rein in costs, track usage, and improve visibility. What started as simple invoice auditing in the 1980s quickly evolved into end-to-end telecom cost management, covering contracts, optimization, mobility, and even expenses tied to IT services.

In this blog, we’ll scratch beneath the surface to explore what TEM is, who it helps, its business benefits, and how much it can save organizations. Then, we’ll talk about why outsourcing TEM might be the smartest move for your company and focus on how Valicom helps organizations simplify and manage this complex challenge.

What is Telecom Expense Management (TEM)?

Telecom Expense Management (TEM) is an enterprise solution that brings clarity to the complex world of telecom and IT services. It includes tools and processes that track usage, verify invoices, manage mobile and network contracts, and optimize overall telecom and IT spends. With TEM, organizations can ensure accuracy, improve vendor accountability, and redirect savings toward business growth.

For instance, every mobile device, cloud subscription, internet circuit, VoIP line, or conferencing tool has a cost attached. Without a system to manage them, these costs multiply quietly in the background – a costly oversight that adds up faster than you think.

To demonstrate its use cases and dive deeper, TEM basics entail:

• Invoice management: Reviewing, auditing, and paying bills on time while catching errors before they drain budgets

• Contract management: Ensuring used services match contracted rates and terms

• Usage monitoring: Identifying underutilized services, unused lines, or overspending on data plans

• Optimization: Streamlining providers, renegotiating contracts, and reallocating resources for maximum ROI

• Mobile expense management: Keeping tabs on ever-growing mobile devices, and wireless services.

So, when people ask, “What is Telecom Expense Management?” The simplest answer is: a structured approach to make sure you’re only paying for what you use and using what you pay for.

Who Does TEM Help?

One might wonder, is TEM just for large corporations with thousands of employees? Far from a rare scenario, the need for telecom expense solutions spans across businesses of all sizes. 

• Enterprises — Large corporations with global networks face telecom bills running into millions. For them, TEM is critical to prevent waste, enforce compliance, and track spending across regions.

• Mid-Sized Businesses — Even though they don’t face the same scale, mid-sized companies often struggle with limited IT staff. Here, TEM practices like automated invoice reviews and mobile expense management can save teams from drowning in paperwork.

• Small Businesses & Startups — lean budgets, a single billing error can hurt and may even compound significantly over time if overlooked. TEM ensures smaller firms don’t overspend and can scale confidently. Because in the long run, every penny saved can accumulate into thousands, if not millions, by year-end. 

• IT & Finance Teams — TEM bridges the gap between technical teams and finance leaders. While IT ensures service availability, finance demands cost visibility. In this case, TEM provides the common ground.

At this point, it’s critical to uncover TEM benefits for companies, procurement teams, and IT leaders alike.

The Business Benefits of TEM

When all is said and done, the benefits of Telecom Expense Management go far beyond lowering costs.

• Cost Control & Visibility — No more scratching your head over confusing invoices, because TEM software provides dashboards and reports that reveal exactly where your telecom dollars are going, what you actually have installed, and what you should be paying for.

• Error Detection & Prevention — Studies show that nearly 80% of telecom bills contain errors. Without TEM, those charges slip through the cracks, costing organizations thousands (sometimes millions, if this is happening at a larger scale).

• Improved Efficiency — While automating manual processes, TEM reduces administrative burden and frees up IT and finance teams to focus on strategy rather than firefighting.

• Contract & Vendor Management — TEM ensures you’re getting what you signed up for, and nothing less. It prevents carriers from overcharging and helps renegotiate terms.

• Scalability for Growth — As businesses adopt more mobile and cloud-based services, TEM scales alongside them, ensuring telecom cost management doesn’t fall behind.

How Much Can Telecom Expense Management (TEM) Save Organizations?

It is important to note that many organizations tend to overpay on their telecom expenses by approximately 15% to 30%, often due to billing errors, operational inefficiencies, and underutilized services. This is a significant amount that directly impacts an organization’s financial resources.

For instance, an organization with an annual telecom expenditure of $1 million could potentially save between $150,000 and $300,000 by implementing effective TEM strategies. Specifically, mobile expense management alone has been shown to reduce costs by 10% to 20%, particularly when uncovering issues such as unused devices or excessive data plans.

Ultimately, TEM proves to show beyond cost saving benefits; it is a strategic approach to enhancing an organization’s overall financial health and operational efficiency. 

Do You Need a TEM Partner? Outsource TEM

Perhaps trying Telecom Expense Management in-house sounds good on paper, but in practice it’s complex, time-consuming, and more notably, resource heavy. Companies need experts, technology platforms, and dedicated staff, and that’s where outsourced TEM solutions come in quite handy.

Precisely, by outsourcing TEM, you get: 

• Specialized expertise in auditing and optimization.

• A dedicated software platform to automate invoice and contract management.

• Ongoing monitoring that catches issues before they snowball into costly oversights.

When it comes to outsourcing TEM, you need a trusted, long-term partner to manage it effectively. With over three decades of experience, who better to rely on than Valicom?

Why Valicom?

Valicom provides telecom expense solutions through its Clearview SaaS platform, offering visibility, automation, and control over all telecom and IT expenses.

What sets Valicom apart: 

• Independent & unbiased — not tied to carriers, so recommendations are always in your best interest

• Flexible services — from full outsourcing to Host & Load software-only models

• Proven savings — helping clients consistently reduce costs by double-digit percentages

• Expert guidance — simplifying everything from mobile expense management to complex multi-carrier networks.

If you’re curious about real-world results, Valicom frequently publishes insights and case studies. Browse to our blog and case studies page to learn more about TEM and how we helped large enterprises save millions of dollars.

Wrapping Up

When businesses think about expenses, telecom is often overlooked, yet it’s the tip of the iceberg when it comes to hidden costs. Without Telecom Expense Management, organizations risk overspending, underutilizing resources, and facing a tangle of inefficiencies. From enterprises to small businesses, it delivers cost savings, transparency, and peace of mind.

Sure, you can handle TEM internally, but with Valicom, you go beyond the surface-level and uncover every hidden opportunity for savings and smarter operations.

Discover how, here!