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October 23, 2008

AOTMP Report Benchmarks Savings of TEM Programs

By Eve Sullivan, TMCnet Editor

In a research report by AOTMP, which was released today, it says the longer you have an enterprise telecom expense management (TEM) program in place, the more savings you will achieve.
The report, “Benchmarking the Value of TEM Programs Over Time,” offers key benchmarks for evaluating return on investment (ROI) and cost savings from TEM programs. It provides technology and telecommunications decision makers with measures for how they compare to peer organizations and information for securing and protecting budgets for TEM programs.
“The latest research report dives into an area we’ve been focused on for years. We frequently hear end users ask about the value from a TEM program after initial cost savings,” said Tim Colwell, AOTMP vice president of knowledge operations. “This report identifies key areas that significantly impact the results an enterprise will see over time, and defines the metrics for measuring a TEM program’s value.”

AOTMP, headquartered in Indianapolis, is an authority on TEM and drives efficiency in enterprise telecom and IT environments through standards and best practices, certification programs, industry research and intelligence, benchmarking data, performance metrics and advisory services.
Telecom expense management is a term used to define a business approach to managing telecommunication service expenses, such as voice, data and wireless, with a combination of software tools and manual auditing. Typical software leverages a telecom carrier’s electronic invoice feeds to gain detailed information. Agents use a combination of software and personal information about the industry to compare pricing and options.
The report reveals a significant relationship between the length of time a TEM program has been in place and the contract negotiation savings rates (CNSR). For example, TEM programs in place one year or less have a CNSR that’s, on average, nearly three times greater than enterprises with no program.
It also shows audit savings are 70 percent greater for businesses that have a TEM program in place for two or more years compared to those with no program.
“At a time when nearly every enterprise is seeking to reduce costs, and many IT budgets are being cut, this report builds a business case for implementing or continuing a telecom expense management program,” said Tim Lybrook, AOTMP president and CEO. “TEM programs produce a more tangible ROI than most other technology projects, but because most executives view these programs as a cost center, they can be targeted as enterprises continue to make budget cuts.”
The report includes data from an online survey, in which more than 200 enterprises participated. The complimentary report is available at:

Eve Sullivan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Eve's articles, please visit her columnist page.

Edited by Eve Sullivan

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