With the increased dependence of the business sector on technology comes an increasing need for companies to manage technology expenses. Studies have shown that technology expenses rank in the top five costs for businesses, even climbing to the top three for many. And ignoring the problem won’t make it go away.
In fact, ignoring the need to manage technology expenses can result in big losses. Technology expense audits often reveal losses of ten percent or more on average due to billing errors, underutilized inventory, less than ideal wireless contracts and other common scenarios. But companies do have options when it comes to expense management.
Internal TEM Audits
The first step in managing technology expenses is to perform an audit on existing systems. With the upsurge of TEM firms, there are plenty of resources available in this arena. Most will walk a corporation through the process, tailoring it to specific needs. Common components may include historic audits to check for past errors as well as ongoing, automated audits to ensure proper billing, usage and inventory.
Technology Management Solutions
Once an audit has been completed and a technology expense management solution tailored to fit a company’s needs, there are generally three levels of service that most TEM firms supply.
TEM Third Party Monitoring
In this option, companies outsource their entire technology expense management to a vendor. In this scenario, companies send all information to the vendor. The vendor then utilizes TEM software to analyze invoices, pay bills, monitor usage and more. Companies keep control through use of real-time reporting via the web.
Self-Monitoring Through Technology Expense Management Software
Self-monitoring is also a popular option with many firms. In this case, a company might purchase or lease rights to TEM software with provision for technical support and training. Benefits of this option include having all information on-site and greater control. Drawbacks include the need for trained staff to monitor and run applications and to interpret reports and audits.
In a “best of both worlds” choice, many companies choose a combination of self-monitoring and outsourcing. In this case the company might subscribe to a hosted application but still utilize its own professionals.
No matter which option a company chooses, it has been proven that TEM solutions save money. From billing to usage and inventory to reporting, there is a technology expense management solution that suits the needs of every company.