Michael Bodetti of TnT Expense Management discusses Vodafone’s recent acquisition of specialist providers TnT Expense Management & Quickcomm and the impact on today’s Telephone Expense Management (TEM) landscape.

A snapshot of today: how would you describe the current TEM competitive landscape?

Today’s TEM landscape is an overload of niche players. Some good, others not so good but overall the vast majority can only offer part of what clients need in terms of TEM. Some can only provide software while others can only provide managed services, some specialize in fixed telecom while many just focus on mobility, some can only provide services in one country others only in one region.

As a result of so many players, many TEM providers have driven the industry toward a price focus causing clients to think that it is a commodity business when nothing could be further from the truth. Selecting a provider based primarily on pricing has caused a high turnover rate where clients jump from one provider to another.

The reality is that clients should focus on ability to deliver all aspects of TEM services everywhere in the world and to deliver the highest possible Return on Investment.  By saving a small amount upfront on a lower cost, low service provider clients risk spending more far more by having to replace ineffective providers who were not able to deliver the expected ROI.

How would you characterize the need of a typical enterprise business, the challenges/hurdles it faces and how a typical TEM solution can help?

Over the last decade enterprises of all sizes are becoming more and more global. As a result it has become increasingly difficult for companies to properly manage their telecommunications services and expenses.  They lack central visibility to what they have and they lack the skills and systems to verify the charges and inventory of services and devices.

All companies use at least some form of telecommunications services to run their business. Providing the right services and managing the expenses associated with these services requires skilled people, systems and processes. If any of these three components are missing there will be a gap in the ability to properly manage the telecommunications and the associated expenses.

A fully managed suite of TEM service can eliminate the challenges enterprises face by providing a detailed, accurate and optimized inventory of telecommunications service which in turn reduces expenses.  The suite of TEM services includes:

• Inventory Management
• Invoice reconciliation and processing
• Auditing and dispute management
• Mobile management
• Carrier contract management
• Provisioning and order management
• Comprehensive Business Intelligence Reporting

Any well run TEM service should provide a return on investment (ROI) well over 100%. Selecting the right TEM provider will help ensure the highest ROI.