Imagine you have identified a few areas needing improvement.
A budget needs to be reduced. Or a project needs attention from a resource
overwhelmed with administrative tasks. Sometimes recognizing pain points is the
easy part. Now how do you decide where to begin? Audit or TEM?
Let’s first consider TEM, a full telecom lifecycle
management solution. It may seem counter-intuitive to start here because
clients sometimes think they need to “clean up” everything before implementing a TEM solution. On the contrary, the right solution
does the cleaning for you. TEM provides a before and after baseline of
inventory and spend with just as little effort as an Audit. TEM also ensures the changes made during the
“clean up” are tracked and verified, whether it’s removing service charges from
a bill or migrating or consolidating services to a new provider.
Any audit will take months from start to finish: from
gathering data to analysis, then requesting service changes or placing disputes
to final verification on the bills. During that time, your environment
continues to change, services are added and removed, contracts are expiring or
renewing, and so on. One key differentiator to TEM is having a constantly
updated, managed lifecycle. Increased improvement can be found by widening the
timespan of inquiry. TEM is an “always on” solution.
Which is faster?
Results should come quickly in either solution. But which is
faster? An audit, right? Well, an audit is definitely shorter because like any project it has a definite beginning and
end. But is an audit faster to results than TEM? No.
Audits may appear to stack all work effort in a shorter
period of time. But it’s the same work effort as a TEM implementation. Perhaps
you’re concerned that you don’t have the resources available to support an
audit’s front-loaded resource demand. In that case, if you’re asking which is
faster, perhaps time savings is important to you. Remember: Audits save money,
TEM saves both time and money. Both solutions have the same lead-time to
Which is cheaper?
Sometime audits are lauded as the cheaper alternative to
TEM. But is that true? It depends on your audit and TEM partner. With CMG, full
audits are included in all our lifecycle TEM solutions. This isn’t true from
most providers. This is why we provide both options to clients. Often, clients
can get two or three years of TEM service for the price of an audit. That makes
the decision easy.
contingency audit engagements?
These pricing structures can be very helpful for
organizations lacking the budget for – or faith in – an audit. CMG offers
contingency based audits for this reason. But be sure to evaluate them
thoroughly. Run a conservative estimate of savings and fees and compare that to
the cost of a TEM solution. Of course, this isn’t apples-to-apples since TEM
provides much more than an audit, but it gives perspective. Audits can be more
expensive than they initially seem.
If you do choose a contingency offering, never pay more than
a percentage of one year’s savings and pay fees monthly, never in one lump sum.
Avoid upfront, flat-fee audits unless it is discounted heavily and requirements
and deliverables are clear upfront.
Is there a “Best of
Both Worlds” solution?
If the primary consideration for an audit is a contingency
pricing engagement, CMG has a unique solution to consider. CMG
offers success-based TEM. Like a contingency audit, there are no out-of-pocket
or upfront costs. This service begins with an audit PLUS a concurrent implementation of full TEM lifecycle management
To learn more about CMG’s comprehensive approach to
optimizing telecom solutions, call (800) 599-9315.
http://costmg.com/wp-content/uploads/2017/09/logo-costmanagementgroup.svg00Neilhttp://costmg.com/wp-content/uploads/2017/09/logo-costmanagementgroup.svgNeil2019-01-15 16:49:002020-10-16 08:29:26Where Do We Start? (Audit vs. TEM)