How many businesses focus on cost savings? How many struggle to find the budget for ICT projects? Gartner still tell us that telecommunications represents approximately 38% of ICT spend so CIOs and IT Managers should look for savings here to free up budget to fund more projects.
Here are five main reasons we hear for not wanting help reviewing telecommunications spend.
- They used a company in the past who didn’t find any savings
Many “consultants” are not necessarily looking for savings. Some are simply vendors showing you how their solution is cheaper. Others are selling you a service that shows you where you are spending your budget not how you can save money. Then there are the inexperienced who assume as there is no obvious usage (as with an inward fax or alarm) that a service can be switched off – they’re very black and white view shows little understanding of the technology and how it is used.
- An audit will be too time consuming
Auditing should not need too much of the client’s time. At TeleConsultants we know what we are doing. We know exactly what we need from your business and have proven processes that utilise our resources efficiently and minimise requirements on yours. We find the savings – you focus on your core business.
- There is already in-house staff responsible for auditing
In most cases this is more wishful thinking than fact. With even the most capable of staff, IT, accounts and administration don’t normally have the knowledge, expertise or time to truly do the job. In most cases bills are paid with errors included and savings opportunities undiscovered.
- Hiring outside experts may give the impression of a lack of trust in those responsible for managing these services
Again, even with the most capable of staff, in our experience few, if any are experienced in this specialised field. TeleConsultants has years of experience analysing, interpreting, uncovering cost savings for businesses. Even if your staff has the knowledge, they rarely have the time.
- We recently changed service providers so have already made all the savings
Changing service providers does not necessarily deliver the full amount of savings possible. You may have asked for services that replace your previous services and quite likely have been offered more than you had before for less cost. This will generate some savings but you could be paying far less. As long as there is still good will, we would normally advocate working with your existing service providers to drive savings rather than incur the cost of change – however sometimes competition is necessary to minimise cost and maximise the value of your telecommunications spend.
Here are a few additional areas where we see savings can be made.
Previous service provider services forgotten about – This is where in the confusion of changing service providers, you forget to relinquish the old services and get charged for both old and new. We see this ranging from a few “rats and mice” services of minimal value through to game changing hundreds of thousands of $ per year
Injudicious use of call diversions – Call diversions can be a very useful short-term tool. But if you do not know what you are doing then they can easily blow your budget as every call becomes an expensive one. There are usually ways of achieving the same end without the same cost.
Technology changes over time – Just because you can keep asking for (and receiving) the same technology you have been using forever is not a good reason to do so. Some are still appropriate and some very much not. A current example of this is using basic analogue and ISDN phone lines when you could be making functional improvements and $ savings by moving to SIP trunks. The public telephone network as we know it has only a few limited years left before it is shut down so time to begin moving now. Sometimes old is just …old!
There may be other reasons why your organisation has not reviewed your telecommunications. Finding savings in telecommunications bills can be significant over a year. The sooner you plug these cost holes the sooner you can bank the savings. Procrastination costs money as every month you pay for services you many not use!