Industry survey indicates CIOs top telecom management initiatives for 2010

PHOENIX, USA: Telesoft, a leader in fixed and mobile Telecom Expense Management (TEM) software and services, today announced results from a recent customer survey covering many of the biggest TEM challenges large enterprises are facing.

While expense management remains a top priority for organizations, chief information officers (CIOs) and chief financial officers (CFOs) are also challenged - often with reduced budgets - to achieve new levels of visibility, inventory and service management, and auditing of mobile and fixed telecom activity.

TEM has emerged as one of the most effective methods organizations are using to cut millions in wasted voice, data and wireless expenses. For example, a $15 million telecommunications budget on average overspends 26 percent, or nearly $4 million, on overbilling, inefficient spending and services or other inefficient processes.

To illustrate the current TEM initiatives for the next year, Telesoft conducted a survey of its customer base, all of which manage multi-million dollar budgets using automated telecommunication expense management solutions. Results from the survey include:

The Top Three Goals for TEM: Improving inventory and service order activity management, increasing audit capabilities, and creating greater control over mobility costs top the list of the most important goals by organizations.

CIOs and CFOs are Most Often Involved in TEM: 85 percent of respondents named the CIO as a key executive involved in managing telecommunication expenses. 47 percent cited the CFO as heavily involved. Other key executives handling TEM included the chief procurement officer (CPO) and the chief operating officer (COO).

Tracking TEM Success: An overwhelming 69 percent of respondents compare expenses to budget by business unit as a key performance indicator (KPI) for monitoring the performance of their TEM solution. The second most commonly cited KPI, at 58 percent, is the actual cost reduction savings. Increased operational efficiencies and improved management was the third most cited KPI of success of TEM programs.

Enterprise Budget Plans: 35 percent of respondents plan to reduce spending on telecom and infrastructure services, while only 16 percent will increase spending in these areas. The other respondents have either not determined a 2010 budget (19 percent) or plan to spend the same as they did in 2009 (30 percent).

“The survey findings are particularly relevant now because with 2010 budgets either offering little or no room for expansion, companies have to find ways to cut expenses with the telecom programs currently in place,” said Thierry Zerbib, CEO and co-founder of Telesoft.

“There are growing complexities that organizations are facing, from increasing mobile workforces to data rich services. The feedback we are hearing from our customers is that by using Telesoft’s automated TEM solution, they are not only able to gain enhanced visibility into their usage and programs, but also save millions.”

“In today’s tough economic environment, there is no room for complacency; organizations need to use the best solutions available in order to uncover new savings opportunities in their telecom practices,” said Joe Basili, President of Network Trends Now, an industry research firm focused on enterprise and supplier telecom expense management. “Telesoft is providing the experience, technology and customer service to help organizations optimize their telecom management methods and focus on profits, rather than costly telecom expenses.”