The Hidden Costs of Telecom: Why Effective Telecom Expense Management (TEM) is Critical for Your Business

Many businesses are missing out on potential savings due to inefficiencies in telecom expense management (TEM). Let’s take a look at some alarming statistics that highlight the importance of implementing an effective TEM program.

Striking Stats That Reveal the Telecom Expense Crisis

1. 12-20% of Telecom Charges Contain Errors

   Studies show that 12-20% of telecom invoices contain errors, often leading to overpayments. Inaccurate billing, forgotten credits, or missed discounts can quickly add up, draining your budget unnecessarily.

2. $65 Billion Wasted Annually on Telecom Costs

   The global telecom industry is wasting $65 billion per year on inefficient telecom and IT expense management. Without proper oversight, organizations continue to pay for services they no longer need, or worse, for services that are incorrectly billed.

3. Up to 30% Savings Potential

   Businesses have the potential to save 10-30% of their telecom expenses by implementing a robust TEM strategy. With proper monitoring, auditing, and management, these savings can be easily realized, providing a substantial boost to your bottom line.

Common Telecom Challenges That Organizations Face

1. 60% of Enterprises Lack Visibility

   A staggering 60% of businesses report that they struggle to maintain visibility into their telecom inventories and expenses. Without clear oversight, it’s impossible to identify where savings can be made or where inefficiencies lie.

2. 20% of Services are Unused or Underutilized

   On average, 15-20% of telecom services are either inactive or underutilized, yet companies continue to pay for them. Whether it’s unused phone lines or dormant data plans, these unnecessary charges accumulate over time, draining resources.

3. 50% of Contracts Misaligned with Actual Usage

   Nearly 50% of telecom contracts don’t align with actual usage. As a result, organizations are often stuck with contracts that don’t reflect their current needs, leading to inefficiencies and overpayment.

The True Cost of Telecom Inefficiency

1. 3-5% of Revenue Spent on Telecom

   Telecom costs often account for 3-5% of an organization’s revenue. This makes telecom expenses one of the largest operating costs a business faces.

2. $800-$1,200 Per Employee Annually

   On average, telecom expenses range from $800 to $1,200 per employee per year. With many organizations employing hundreds or thousands of people, these costs quickly add up.

3. $30 Billion in Billing Errors in the U.S.

   The U.S. telecom industry alone sees $30 billion in billing errors each year, an issue that affects businesses of all sizes.

The Impact of Operational Inefficiencies

1. 45% of IT Departments Lack TEM Tools

   Almost 45% of IT teams report lacking specialized tools for managing telecom expenses. Without the right tools, manual processes can lead to mistakes, inefficiencies, and missed opportunities for savings.

2. 40 Hours Per Month Spent Reconciling Invoices

   On average, IT and finance teams spend 40 hours each month manually reconciling telecom invoices. This time could be better spent on more strategic tasks, but without automated systems, invoice reconciliation remains a tedious and error-prone task.

3. 80% of Companies Fail to Track Unused Lines

   A shocking 80% of organizations don’t have proper processes in place to track and disconnect unused or redundant telecom lines, continuing to pay for services they no longer use.

Why TEM is a Game-Changer for Businesses

The benefits of an effective TEM program are undeniable:

1. 100-300% ROI on TEM Solutions

   Companies typically see a 100-300% return on investment within the first year of implementing TEM solutions. The savings from reduced billing errors, optimized contracts, and more efficient processes far outweigh the costs of implementing a TEM program.

2. 90% Error Detection

   TEM systems detect and prevent up to 90% of billing errors, ensuring that your telecom invoices are accurate and you’re not overpaying for services.

3. 25-35% Faster Vendor Dispute Resolution

   Organizations with TEM solutions can resolve vendor disputes 25-35% faster, improving cash flow and accountability. Instead of waiting months for credits or corrections, your TEM system can expedite the process.

Take Control of Your Telecom Expenses with Valicom

At Valicom, we understand the importance of effective telecom expense management. Our proven solutions are designed to help businesses like yours save up to 30% on telecom costs while improving visibility, accuracy, and efficiency. Whether you’re struggling with invoice errors, unused services, or misaligned contracts, Valicom can help you regain control of your telecom expenses.

Don’t let inefficiencies drain your bottom line. Contact us today to learn more about how Valicom’s Telecom Expense Management services can drive significant savings and operational improvements for your organization.

Request a Consultation Now and start saving today!