Managing technology expenses is taking up an increasing bite of company revenue – and chief information officers’ time.
Forrester Research states that 3-6% of an enterprise’s gross revenues are spent on technology services in North America, yet most CIOs and IT departments can’t easily get a clear picture of their technology estate spend, let alone work with the finance department to understand total expenses.
Unfortunately, this is a common situation within most of today’s enterprise organizations.
Many CIOs try a “do-it-yourself” approach with homegrown spreadsheets and other systems – which can be tricky, given rate plan discounts, multi-location contracts and other variables. Technology expense tracking is unwieldy with standalone tracking systems, spreadsheets or even paper files.
Consider Billing Errors
Along with the complexity of expense management, billing errors are also a key issue for today’s CIO. Research shows that 7-12% of technology invoice charges contain errors.
Billing errors related to wireless, voice, data and network services can occur because of factors like usage, improper discounts, installation and hardware charges, taxes or fees or other usage-related premiums. Security, bandwidth and other charges can also be prone to error.
A Standardized Approach to Managing Technology Expenses
To simplify management of the full lifecycle of a technology expense, enterprises do best with resources that bring deep knowledge of technology and utility services and corporate finance, along with contract negotiation and billing. It’s an unrealistic expectation for the CIO to have all the resources to manage such an undertaking.
Simplification means standardizing with a specialized solution provider that includes:
- Complete technology, energy, and other expense invoice capabilities, as well as the ability to manage technology inventory and assets, contracts for services, service order activity and invoice processing.
- Ease of integration with the organization’s financial systems.
- Specialized skills in voice, data, and wireless networking and billing.
Automated SaaS technology for technology expense management provides a way to audit and manage invoices and expenses using workflow. Invoice dispute resolution, rate plan optimization, data mining and data analytics are all made possible with the same system.
Learn More about Managing Your Technology Estate
In all, when it comes to telecom expense management, the CIO benefits from a standardized, centralized, automated and transparent methodology.
Share your technology expense management questions or concerns below. Contact AMI Strategies for more information.