Where Do Tem Vendors Distinguish Themselves From One Another?

A progressive TEM vendor comprehends and abides by this difference and provides the required software, people, support, knowledge, and experience through Communications Lifecycle Management.

FREMONT, CA: There are several ways in which Telecom Expense Management (TEM) vendors can differ from another. Since the industry houses a range of providers, it is imperative to understand what separates the excellent from the good (and sometimes, not-so-good).

The following are some of the most important aspects to consider.

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A True Concentrate On Communications Lifecycle Management

At first, TEM is no longer just TEM. Enterprises adopting next-generation technologies must manage them with more than the expense. A progressive TEM vendor comprehends and abides by this difference and provides the required software, people, support, knowledge, and experience through Communications Lifecycle Management. This includes a holistic approach for telecommunications, mobility, information technology services, and devices, from design to end-of-life.

Method Of Delivery

How a TEM provider delivers its services depends on an organization's business needs and internal expertise.

Software as a Service (SaaS)

In this structure, the vendor provisions a software platform. The enterprise then is accountable for updating and maintaining all data and addressing any issues. Examples incorporate pursuing billing errors, company chargebacks, ensuring moves/adds/changes/disconnects, etc. The SaaS provider should disseminate updates as necessary and may do so simultaneously (called "multitenant") or one client at a time. Until an organization runs its own professional, well-oiled TEM department, the SaaS model postures difficulties for most small and mid-sized enterprises.

SaaS Plus Consulting

Here, the TEM vendor supplies the software above and, typically at additional cost, will also provide consulting services. These can involve advising the enterprise on steps to take or doing the work for the client, all subject to what the vendor offers and the customer chooses. Like its predecessor, SaaS plus consulting works best for enterprises with devoted in-house telecom, mobility, and IT managers.

Gain Share

Commonly called contingency-based firms, gain share companies do not charge upfront for their services. Rather, when they escort an audit, they pocket a share of the savings they find. That is available, to be sure, but there is a risk. Clients may not inevitably know or have insight into whether the vendor marks up its discoveries to create or increase profit. As a result, gain share TEM providers require a way to stay in business; this model comes with little guarantee that consultants aren't taking issues into their own hands.

Resellers/Aggregators/Wholesalers

Resellers, aggregators, and wholesalers provide TEM contracts directly with particular carriers and only sell services from those suppliers while extremely marking up costs, add-on fees, and surcharges. The benefits are converged billing and basic centralized support. Still, the model ropes end users into using carriers that may not prove the best quality or fit.

For example, the network provider may not offer an organization's full range of access, may not come with top-tier help, or service-level agreements may have issues with intermittent access or any other potential drawbacks. In addition, even though most resellers, aggregators, or wholesalers target to pair customers with the best likely option(s) in their portfolios, this can come at the cost of the client's pocketbook as they earn their income through markups.

There are other potential disadvantages when using a reseller/aggregator/wholesaler. For starters, clients generally pay higher fees than contracting directly with carriers and do not have visibility into billing with these providers.

 In addition, the vendor (reseller, aggregator, or wholesaler) owns all contracts with the carriers, limiting end-users ability to explore details. Further, when a customer ends a contract with a reseller, aggregator, or wholesaler, it may have to reinstate all services.

Furthermore, resellers/aggregators/wholesalers cannot access clients' underlying networks or circuits. Therefore, when technical problems or service disruptions occur, customers experience drags and increases to repair. Due to a lack of specialized staff and often experienced help desk resources, resellers/aggregators/wholesalers must turn to the service provider to settle issues.

If a reseller/aggregator/wholesaler has its field services arm, it is incentivized to dispatch its trucks for repair. Be aware that this can be done lacking troubleshooting measures, proving expensive to clients and potentially without resolving the problem.

Fully Managed Services

As the term implies, fully managed services mean the vendor, not the customer, undertakes all telecom, mobility, and IT management activities. In this scenario, the enterprise is not necessary employing its experts – or, if it does, it can redirect those staff to revenue-generating tasks and away from the specialized, time-consuming work of communications lifecycle management.

Instead, a completely managed service provider acts as an extension of the client's technology management department while offering visibility and insight to the customer at all times.