What Is TEM and What Are its Benefits?

Jan 5, 2019

Telecom Expense Management, or TEM, is a set of tools for the effective management of communications costs. It oversees data, mobile, voice, and other telecom related expenses. It enables companies to manage expenditures and optimize their overall communication budget.

What Is TEM and What Are its Benefits?

(Pixabay / TheDigitalWay)

Nowadays companies spend a significant portion of their budget on communications. This is where TEM comes in. It is an efficient tool that helps identify overspending, cut waste, and come up with long-term and short-term savings plans.

TEM is cost-efficient. The main reason why companies utilize the tool is to help control expenses and manage the communications budget. In the past 10 years, corporate telecommunications spending has risen from being stratified as number 10 to number five in the hierarchy of budgeted items, and telecommunications spending is expected to grow even more in the coming years. TEM cannot stem the tide; however, it can help manage the costs, which can lead to controllable growth within the budget.

Outsourcing TEM

There is a good reason for the rising trend in outsourcing company telecommunications. Instead of recruiting and employing a team of experts to build an in-house telecommunications platform, companies can save money by outsourcing these tasks. With TEM, outsourced telecommunications also lead to streamlined use and operations. The savings from TEM come in the form of lower fees and charges, limited unauthorized usage, and fewer billing errors. TEM can also help your company obtain credits and refunds from any overcharges.

In-house programs usually have manual procedures that include data entry and spreadsheets. These tasks take up a lot of time and resources, and anytime there is manual data entry, there is human error. Human error is one of the main causes for disputes over poor inventory management, overcharges, invoicing, and fund recovery. A TEM system is automated and accurate. It boosts productivity, which allows the company to focus on their core business and drastically minimize demands on internal business resources.

Streamlined, accurate operations lead to more time for management to look at the bigger picture. TEM handles the details and day-to-day operations, and it provides reports and insights to management. The company can then use these operational insights for its strategic financial planning. With the expected growth in communications expenses, planning for these expenses is essential to future budget considerations. By successfully preparing, companies do not need to play catchup with costs, as they can allocate a budget for their future communications costs well before the time comes to implement it.

How Exactly TEM Saves Money

TEM helps businesses with cost management of data, mobile, and other communication services by offering a comprehensive and accurate inventory of the entire network. This includes analyzing resource assessment and requirements, evaluating the impact of a network to the business income, creating a telecom budget, and double checking the accuracy of invoices. All of this assistance can lead up to a 25 percent reduction in overall telecom expenditures in the first year of TEM use.

Furthermore, TEM offers leverage in dispute resolution and usage management. It prepares proper business reports to aid companies in budgeting telecom usage in order to increase productivity and profits. A quality TEM system often pays for itself in a matter of months from its implementation.


Communication is one important aspect of ensuring that your customers are greatly satisfied with the products and services that you provide. Moreover, it is also a way to show how the business is dedicated to managing the relationship between the organization and the customers. This infographic provides insights on how you can save from communication expense.
What Is TEM and What Are its Benefits?

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