Communication Service Providers
How telecom expense management drives cost optimisation for CFOs?
As we move forward into 2025 and beyond, embracing a comprehensive approach to telecom expense management (TEM) will be vital for organisations aiming to thrive in an increasingly competitive landscape. By prioritising TEM initiatives within their broader financial strategies, CFOs can drive sustainable growth while ensuring that every dollar spent on telecommunications delivers maximum value to their organisation.
This article explores how telecom expense management systems can be a valuable part of CFO services, helping businesses optimise costs and improve financial oversight.
The shift from cost reduction to cost optimisation
In the 2023 4Q CFO survey, 36% of CFOs prioritised cost management for 2024, emphasising a shift from traditional cost-cutting methods like lean manufacturing and offshoring to business expense management and cost optimisation. While cost reduction focuses solely on short-term savings, cost optimisation balances immediate relief with long-term growth, fostering agility and reinvestment. However, the transition from cost reduction to effective cost optimisation is fraught with challenges. A 2024 study revealed 82% of companies missed cost-reduction targets, largely due to technology infrastructure issues, underscoring the need for telecom expense management software to enhance visibility, enabling organisations to better meet cost optimisation goals.
This shift toward cost optimisation highlights the growing need for strategic solutions that go beyond traditional methods, addressing both immediate financial pressures and long-term growth opportunities. To navigate these challenges successfully, technology becomes a critical enabler, with TEM systems offering the visibility and control organisations need to achieve their cost optimisation goals.
Leveraging TEM for cost optimisation
TEM systems are a critical component of cost optimisation strategies, offering organisations the ability to streamline telecom operations, gain deeper visibility into spending, and achieve greater financial efficiency with benefits that include:
Enhanced visibility: TEM systems aggregate and analyse data across business units, enabling CFOs to pinpoint which cost-reduction efforts will yield the highest returns. By standardising data and streamlining telecom expense management processes, TEM ensures that cost-cutting measures do not compromise future growth opportunities. Enhanced visibility into telecom expenses allows CFOs to uncover inefficiencies and optimise spending for sustainable financial outcomes.
Uncover hidden costs: One of the most significant advantages of expense management software is its ability to reveal hidden cost savings. By analysing usage patterns and contract terms, CFOs can identify inefficient telecom services, such as underutilised lines or unused features that incur ongoing charges. Regular audits and reviews of telecom expenses empower businesses to eliminate unnecessary costs, resulting in substantial savings.
Automation: TEM automates manual tasks like invoice validation and expense tracking. This automation not only reduces human error but also frees up valuable time for finance teams to focus on strategic activities that drive business growth. By replacing manual processes with automated solutions, organisations can streamline procurement and billing operations, leading to greater operational efficiency and more effective cost management.
Strategic framework for cost optimisation in TEM
TEM offers CFOs a strategic framework to drive cost optimisation through several key mechanisms.
Data-driven decision-making: TEM provides critical insights into telecom usage and spending patterns. Detailed reports enable CFOs to make informed decisions when negotiating contracts with service providers. Access to accurate data allows for securing favourable contract terms, identifying improvement areas, and negotiating lower rates with vendors.
Vendor management: By consolidating data from multiple telecom service providers into a single platform, TEM simplifies vendor management. This centralised approach enables CFOs to monitor performance and ensure compliance with contractual obligations, thereby maximising telecom investments and identifying opportunities for better contract negotiations.
Security and compliance: As digital transformation progresses, robust security measures become essential. TEM systems monitor vulnerabilities within the telecom infrastructure, helping CFOs mitigate potential data breaches and ensure compliance with industry regulations, thus safeguarding sensitive business and customer information.
Improve cash flow predictability: TEM enhances control over telecom expenses, allowing CFOs to forecast future spending more accurately. This capability aids in effective budget allocation while avoiding unexpected costs, empowering organisations to make informed financial decisions and allocate resources for long-term growth.
Advanced technologies for further enhancing cost optimisation
Integrating AI-driven analytics and Generative AI into TEM empowers CFOs to enhance cost optimisation and efficiency. AI-driven analytics provide predictive insights, enabling better resource allocation and faster invoice processing. Generative AI automates customer service and optimises network management through load balancing and traffic routing. These technologies uncover deeper insights into telecom expenses, automate tasks, and streamline decision-making. By leveraging AI, CFOs can achieve more effective cost management, improved operational efficiency, and sustainable growth.
To maximise the benefits, CFOs must set clear, measurable objectives that align with business goals, creating a roadmap for tracking progress. Regular audits and continuous monitoring of expenses help identify discrepancies, recover lost funds, and prevent overpayments while adapting to evolving business needs.
How can Infosys BPM help optimise costs in TEM?
Leverage big data analytics for clear visibility of spend data and actionable insights. Designed as a managed services model, the Infosys BPM cloud and telecom expense management solution (CTEMS) simplifies cloud and telecom expense management, overcoming challenges like limited spend visibility, complex pricing, and vendor errors. Our platform-agnostic solution streamlines operations, optimises costs, and drives efficiency.
