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Telecom Cost Management Survey Finds that Mid-Market Enterprises Average 2 Percent Late Payment Penalties

Posted on July 14, 2006 Written by oss

As a result of inefficient processes to manage telecom expenses, late payment penalties, carrier billing errors, and inadequate visibility into spend, mid-market enterprises are forfeiting opportunities to reduce telecom expenses by an average of 3% to 10%. AberdeenGroup’s new report, ‘The Challenge in Total Telecom Cost Management’ found that mid-size enterprises must address the following issues:

– Inefficient manual processes with 64% of bills were being received in paper format.
– Late payment penalties that are 2% of telecom spend.
– Complex carrier services, contracts, and legacy billing systems produce invoices with error rates of 7% to 12%.
– Eighty percent of the respondents have no formal program to audit for contract compliance.

Telecom costs are difficult to track because they include tangible assets with decentralized inventory spread over multiple locations and intangible services. Move Add Change, Disconnect service order activity creates a moving target that enterprises must reconcile. [Read more…]

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