The challenge: few enterprises have a detailed understanding of how much they’re spending on telecom equipment and services or with whom they are spending these dollars. The reason? Telecommunications services purchase decisions are widely decentralized and poorly controlled at most companies.
In fact, a June 2004 Aberdeen benchmark study of telecommunications spend practices of 115 enterprises uncovered the following:
• 7% to 12% of telecom service charges are in error. For large enterprises, such errors are costing more than $8 million a year in lost profits.
• Up to 85% of a typical enterprise’s telecom bills are not audited and are simply paid in full. For bills that are validated, billing analysts most often examine just a subset of invoices associated with the largest spending.
• There is a lack of insight into telecom spending. Forty-five percent of companies are actively managing less than 50% of overall telecom spending.
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