Commercial Challenges within IT
I was reading an interesting article recently in the CIO magazine about IT Workforce Management and how there needs to be more commercial savvy people in IT to achieve the cost reduction targets that all CIO’s carry.
IT costs are increasing as a % of revenue and operation expenses and the trend is going up. Many IT professionals do not treat IT spend as though it were their own and there is often a lack of governance, transparency and commercial challenge. The focus is often on new, not renew and decommissioning rarely happens.
CEOs are looking to CIO’s to help with cost reductions to support the pressures of falling revenues and increasing costs, particularly as IT tends to be the highest cost in most organisations. The article went onto talk about how with the many projects and challenges IT Departments face today. They often focus on quick wins and achieving cost reduction targets and do not always take it one step further to make changes that will impact in the long term and ensure those savings continue to be maintained.
Telecoms spend, particularly Mobile is a growing cost for most businesses with more and more users opting to use mobile rather than fixed and with the ease of smartphone capability, mobile data is an area set to continue to increase. This links nicely with the concept that cost reduction targets are set and achieved but not maintained, this is nearly always the case with organisations’ mobile contracts. Once new contracts are put in place and become the responsibility of the cost centre owners within the Departments, there is often no central person responsible for tracking and monitoring them, which means costs inevitably increase.
Here are five key tips on how to ensure you continue to make savings:
- Compare Pricing with Original Contract – You may be surprised to hear that a large number of contracts agreed and signed do not actually get implemented correctly by the supplier. Simple human errors in the implementation of a new contract can result in a mixture of old rates and new rates meaning the savings you were expecting are not achieved.
- Airtime Credit/Equipment Fund – Check to make sure you actually received your airtime credit bonus and/or the correct amount of equipment credit that was agreed initially. Do some simple checks to ensure that your provider is allocating equipment invoices against your Equipment Fund rather than invoicing the full amount. Also, ensure you regularly check against your fund as providers are notoriously bad at providing Tech Fund statements that make any sense to customers. This is important as again, mistakes can be made which means you do not receive what was agreed.
- Inventory – It is important to regularly check that all your mobiles are still in use as many organisations do not have sufficient leavers processes in place that capture the return/cancellation of mobile devices. This means that phones are often left for months with charges still being incurred but no usage.
- User Call Profiles – I would recommend running a monthly usage report so you can see a snap shot of your user base and quickly identify watch-points. I.e. anyone incurring additional/excessive charges for going over their data bundle or International/Roaming. This way you can made any amendments that are available to you to decrease these costs going forward.
- Internal Processes – Consider if you need to send a communication to your user base to give them advice on how to be aware of their charges. There are often internal processes you can put in place to help ensure that your mobile expenditure is cost optimised.
Flare Telecom offer a Mobile Audit & Optimisation Service which always identifies savings for companies and carries out all of the above on your behalf. The benefit of using Flare to do this on your behalf is (a) Time; often companies do not have the resource internally to carry out these checks and (b) Expertise; an experienced eye with years of experience in mobile can quickly identify savings and anomalies in your contract/bills and make recommendations for changes. It is a fairly low cost service which will benefit our business and give you an insight into the expertise that Flare Telecom can offer your business.
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If you would like a free consultation to discuss your challenges in more detail, please contact me on 01635 246769 or via email [email protected]