3 Ways a Telecom Management System Will Save You Money
By Steve J Murphy

As reported in Ezine Articles

A telecom management system is first and foremost a money saver. If the telecom system cannot provide a clear reason for you to invest your time and money (but, you may not need to pay for the system, more on that later), then why would you pursue it as a strategy? The return on investment, both hard dollar costs and time and energy invested, needs to be clear before the investment is made.

So, where do telecom management systems generate their payback? Telecom systems certainly create efficiencies in terms of automating manual processes within the IT and finance organizations, but our focus is on the hard dollar savings telecom management systems are renown for delivering. These hard dollar savings are in the “indisputable” elements of the telecom program. The hard dollar savings create a solid business case that managers can take to their executives for concurrence to move forward. If the investment element of the telecom system is low or free, then the only expenses that need to be covered before generating a clear return to the company is the set-up effort.

Where do these returns come from? Hard dollar savings can only be generated buy lowering the telecom bills of the user. This lowering can occur one of 3 ways: 1) by reducing the rates that the existing carrier is bill, 2) by changing the services the user is paying for so service is maintain or even enhanced while costs go down, and 3) by introducing new carriers with superior value propositions. A comprehensive telecom management operation will accomplish these three things and more.

Reducing rates charged by an existing carrier can be challenging. After all, you are typically bound by a contract or tariff, reducing the flexibility that the carrier has in changing what is being charged. Getting rates changed is possible, but it requires work on your part and may also force a contract extension. If you are happy with your carrier, a contract extension may be tolerable. The telecom expense reductions seen in this scenario typically range less than 10%, Telecom carriers in a re-negotiation proceeding do not have a significant incentive to reduce rates, so some sort of loyalty discount is typically rolled out. The two remaining methods of reducing your telecom expenses, however, are preferred.

Changing carrier’s services is a very effective means of lowering current spending without interrupting or interfering with an existing telecommunications carrier contract. Evaluating the specific services at each of your locations, determining whether you can simply disconnect a service, consolidating service to more efficient facilities, or up-grading to a newer technology can yield savings of 10% to 20% if the network has not been optimized for quite some time.

The best savings are usually obtained by actually using new telecom service providers to replace existing services with much more competitively priced services. There are many quality service providers that supply similar quality to the larger carriers at rates in excess of 30% below what the larger telecom carriers charge. Strategies are available for every comfort level, so using an alternative carrier to lower your cost can be extremely beneficial.

Consider using a telecom management platform to tie these three strategies together. Platforms that detail telecom inventory, analyze billing trends, as well as provide flexible analytics are best suited to support cost containment and reduction initiatives.

Our perspective:

If left unchecked, voice and data cost can become a major business expense. As the industry continues to evole, the cost of voice and data have become more competitive while the increase efficiencies will take your business to a new level. For too long business has settled for the mediocresy of service provided by the major carriers.  Significant savings can be found by shopping your account.

Hutchinson Business Solutions provides corporate financial solutions. We are an independent broker who represent over 50 of the major voice and data providers.

Each business is unique. We will work with you to find the right provider that will allow you to increase your efficiencies and address your needs.

To learn more contact george@hbsadvantage.com

Reign in Your Telecom Spend

February 6, 2010

Telecom spending is in on the rise, which raises a critical question: are you in control? For most companies, the answer is no. Today’s changing competitive landscape and increased telecom cost management pressures mean that even the smartest companies must examine their spending to avoid overpaying millions of dollars each year in billing errors, unused services and vendor noncompliance.

Hutchinson Business Solutions (HBS)  give efficiency and visibility to the purchasing, billing and contracting process, ensuring you never overpay for telecom and take full advantage of every available telecom cost reduction opportunity. While billing, contracts and rate structures can be overwhelming for even the most experienced,  for over 10 years HBS’s visibility has given us the insight needed to give you telecom cost control, while increasing service levels from your vendors.

Whether you need guidance justifying a purchase or full-scale telecom auditing, HBS ensure you’re always paying fair market value and maintaining vendor relationships that are compliant with your contractual engagements.

Our clients are finding savings from 10% to 40%. Should you like to know more about your opportunity for savings and efficiencies email george@hbsadvantage.com

Come to think of it

June 16, 2009

Has the recent turndown in the economy had an effect on your business?

What steps have you taken to tighten the belt?

Did you reduce the workforce? 

Did you reduce or drop employee benefits? 

In difficult times you may find you have to think outside the box. Reducing the workforce and employee benefits are obvious choices. 

There are diamonds in the rough out there! 

Where you ask? If you only knew!

 Most companies budget for expenses and never really drill down to see if there are opportunities for savings.

 Deregulated Energy: Natural Gas and Electric

 Is your company paying more than $5000 a month on natural gas or electric for your building! 

The deregulated Gas and electric market is the lowest it has been in the last 3 to 4 years. 

Our clients are saving from 15% to 30% on natural gas. 

 

Just in the last week, we saved a client over $45,000 by locking in their Natural gas for the next 12 months.

 

Our electric clients are saving from 6% to 15%

 

Just last week, a client saved over $94,000 by locking in their electric for the next 12 months.

 

How much do you think your company may qualify to save?

The local provider buys gas and electric in the wholesale marker and sells it to you retail.

We put our clients in the wholesale position.

 The savings is yours and falls to the bottom line!

 Voice and Data:

Here is the real sleeper. Many companies feel they wear a safety blanket for they have Verizon or ATT as their provider.

You are paying a premium for that blanket!

Deregulation allows third party providers to use the Verizon / ATT platform and deliver voice to their clients at a discount.

 Our clients are saving from 15% to 40% on their monthly Voice and Data Billing. 

What is 25% of your bill?

 Come to think of it, we haven’t looked at these costs recently?

 Call Hutchinson Business Solutions 856-857-1230. There is no fee for our services!

 Or you can email george@hbsadvantage.com

 

Let the savings begin!!!!!