In-House or Outsourced TEM? Should it Still be a Question?

As IT/Telecom departments continue to run “lean and mean”, the lure of hands-free operation and maintenance continues to motivate many IT folks to outsource their Telecom Expense Management (TEM). And, with all that’s on the IT plates these days, it may be the best solution, hands down.​

Yet for others, issues of control and security ultimately result in continuing to keep licensed software safely ensconced in-house, where access and reporting are in tight control.​

Regardless of which camp you’re in, it’s important to periodically review how you handle the question of in-house versus outsourced for your TEM applications. Why? Because organizations change in terms of structure and expanding or changing data sources. With those changes may come a need to either outsource your TEM or bring it back in-house.​

As you take that “second look”, here are a few things to make sure you’re taking into consideration:​

How much control do you want?

Are you confident that by outsourcing you will be getting the best deals in terms of optimizing your vendors and negotiating contracts? If you feel you need a high degree of control, consider licensing and keeping your software in-house. On the other hand, if you feel confident that your provider is looking out for you and wielding their power and influence to get you the optimum mix of contracts and services, then outsourcing may be ideal for you.​

How much visibility do you need?

Make sure that your outsourced TEM provider is giving you the level of granularity you need in your data, and that they allow you to massage that data and present it in a way that makes sense to your organization. If you are able to find that flexibility and you are provided with an interface that makes it easy to assemble views of the data on the fly, then you’ve found a good outsourced solution. If you need more hands on control over your reporting and plan to regularly get in and look at the data in more depth, consider an in-house solution.​​

Are you getting your money’s worth?

Many IT and Telecom managers are less than enthusiastic about paying $5,000-$10,000 per month for a third party to manage all their telecom and IT contracts and equipment. They’d rather pay a lump sum to own the software outright. They want the freedom to customize and expand as they see fit. Others prefer a monthly fee to access their TEM solution through the cloud, knowing it is automatically updated periodically. It’s worth the cost to enjoy hands free maintenance and easy access.​

So, does your current arrangement still make sense for your organization? Add up the monthly cost of your provider and compare it to purchasing a TEM solution outright. Calculate the ROI. Add in the soft returns, such as access to data, convenience and freeing up employees. Weigh all the positives and negatives.​

Above all, make sure you have options. You should know that many TEM vendors offer hosted solutions only; others only offer licensed on-site solutions. At TTI we offer both. We do this because we understand the dynamic environment of IT/Telecom and the changing nature of application needs.​

And, given the world we live in, who knows what’s around the corner? Just make sure you have a vendor who is prepared to go there with you.​