Despite the maturity of TEM software, increased adoption among enterprises, and the substantial savings being attained by those that have implemented the software, many corporate decision makers are still skeptical about the value proposition and return on investment (ROI) for implementing Telecom Expense Management Software. Seems they may doubt the savings being achieved, and they may think TEM salespeople are inflating results just to win their business.
So when audit results are made public, as was the case with the telecom audit from my home State of New Jersey last year (see report), it provides some insight into an organization where TEM software might have been beneficial and provided significant savings. The results of New Jersey’s audit showed:
More than 18,000 landlines could have been eliminated, saving the state more than $2.8 million annually.
Nearly 1,400 wireless lines could have been eliminated, saving the state $412,000 annually.
More than $250,000 in "unreasonable costs" was incurred to call directory assistance, or 411 services, during a one-year period.
A one-time savings of more than $40,000 for disconnected data service lines that the state says it's owed by Verizon.
Many state departments do not maintain documentation to justify their employees' wireless device assignments -- about 19,000 such devices are being used by executive branch employees.
The audit was completed by the New Jersey Office of Information of Technology (OIT). Their audit objective, scope and methodology would be consistent with what we would consider Telecom Expense Management Best Practices, as they listed their objective "to evaluate the effectiveness of OIT's internal controls concerning the utilization of and billing for land-based, wireless, and data telecommunications lines and to review the process of awarding and/or extending four contracts covering multiple providers of telecommunications services."
What lessons can be learned from this audit? Perhaps the best lesson is you can’t control what you can’t see. Once an enterprise or government agency reaches a certain size eyeballs are simply not enough to control and manage inventory and expenses, the best option gain control and get visibility of expenses is to implement TEM software. Had the State of New Jersey implemented TEM software they may have been able to avoid many of the issues discovered in the audit.
That’s not to say TEM software is a panacea, implementing the software wouldn’t have prevented all of the issues found in the audit, that would require a change in policies and procedures, but nonetheless the value proposition for implementing TEM software would have been very compelling and provided a substantial ROI.
About Vocio: For over ten years Vocio has been an industry leading Telecom Management and Telecom Consulting Firm and has helped companies, from small enterprises to the Fortune 100, meet and exceed cost cutting and technology initiatives. We provide Telecom Expense Management, Wireless Expense Management, and Telecom Auditing. We can be reached at 888-200-8647.