With companies looking to simultaneously accelerate digital transformation and drive cost savings, telecoms spending is under the microscope. Cutting edge telecoms expense management solutions, which encompass mobile and cloud expense management tools and processes, can support these objectives and generate millions of rand in annual savings.
But many companies are curious to know just how much money they can save through smarter mobile expense management, where these savings will come from, and what determines the return on investment (ROI) they can expect. We have created a guide that answers some of these questions.
What determines how much money you can save through mobile expense management?
There is no single answer to the question, “How much money can an enterprise save through smarter technology expense management practices?” A few factors that will determine potential savings include how disciplined your cost management processes already are, which technology ownership models are in place (bring your own device versus corporate-owned), and the levels of hybrid and mobile work in your organisation.
But to guide your expectations, here are some things to consider:
How big is your mobile and cloud estate?
The larger your telecoms and cloud estate, including all assets and services, the bigger the potential savings you can achieve. In most large enterprises, a range of inefficiencies and complexities have crept in over time. Cutting edge mobile and cloud expense management should be able to uncover a range of cost savings opportunities in any company with complex environment spanning fixed line services, IT infrastructure, mobile devices and contracts, and user-owned devices.
How mobile and distributed is your workforce?
Many of the costs associated with telecoms have multiplied after the pandemic because of the increase in mobile, hybrid and remote work. Keeping track of mobile spending across a more mobile or distributed workforce can be challenging without the right tools in place. We find that companies with large hybrid/remote workforces or more distributed business models (with lots of branches and stores, for example) get particularly good ROI when they simplify operations with mobile expense management tools and processes.
What service and functionality does your technology expense management provider offer?
Not all mobile expense management solutions are created alike. The functionality, speed of deployment, and ease of use will all be key in determining ROI. Ideally, you need a cutting edge solution that helps you manage the spectrum of your IT and telecoms environment, starting with enterprise mobile services.
A cloud-based platform that enables you to simplify operations and manage costs and devices across their lifecycle is a good option. You’ll want a solution that enables you to commission and manage infrastructure, keep tabs on resources, track voice, data and cloud consumption, and allocate inventory right across the IT and telecoms environment.
Some key things to look for:
- End-to-end optimisation and automation of manual processes
- Full integration with your key service providers
- Integration with your ERP and service desk systems
- Tools for continuous optimisation of costs
- The ability to accelerate ROI with an assessment of your entire technology environment within 40 hours
- Automated alerts and usage notifications
- Vendor and service provider independence, backed up by consulting support
Where do the cost savings come from?
Here is a guide to some of the direct savings you can potentially achieve through smarter technology expense management:
- Preventing accidental overbilling by service providers
- Reducing wastage and abuse of company telecom resources
- Optimising contracts with service providers to get better rates for voice and data
- Tighter management of hardware inventory
- Elimination of unused contracts and devices
- More accurate charge-bacsk and disbursements
- Avoiding out of bundle rates for mobile data
- Making users more accountable for spending
In addition, there are some powerful indirect efficiencies and cost benefits that are harder to quantify:
- Better planning and budgeting
- Freeing up working capital
- Automating manual processes such as invoice reconciliations and management reporting to free up procurement, finance and IT teams’ time
How much do the cost savings amount to?
As we noted earlier in this blog post, the exact level of cost savings will vary company-by-company. But we have found that the average company that implements smarter mobile expense management can reduce wasted telecom spend from around 20% to as little as 3% of the annual total.
That’s without even touching on the opportunities for optimisation. We have seen some companies save 19% on their mobile voice costs and between 25% and 60% on mobile data costs when they deploy cutting edge mobile expense management practices. One bank managed to cut telecom costs by R8.4 million a year!
We have helped many blue-chip companies to simplify mobile and cloud expense management. Our cutting edge solutions can help you manage your mobile environment, eliminate most wastage, and free up your capital to innovate. Get in touch to learn how our knowledgeable team can support your mobile expense management, FinOps and digital transformation journey.