Research shows US companies putting faith in long-term planning to beat slow growth

Tokyo, Hong Kong, Macau, Paris, London, New York and Gothenburg, Sweden - 22 November 2011

Cutting costs and services not the way to speed growth, says AOTMP survey

MDSL, the leading provider of international Telecom Expense Management (TEM) and Market Data Management (MDM) solutions, revealed the findings of new AOTMP research showing that lack of visibility into US enterprises’ telecom expenses is the primary driver behind global Telecom Expense Management (TEM) implementations.

According to AOTMP research, 50 percent of enterprises researched cited improving telecom service and asset visibility as their top objective for international TEM deployment, while only 41 percent saw reducing telecom costs as their primary goal. Twenty-nine percent were focused on deploying new technologies in order to increase overall business efficiency.

The findings were mirrored in a recent AOTMP State of the Industry webinar, where the majority of respondents (33 percent) said that spend visibility and business intelligence were the most critical driver for deploying a TEM solution internationally, while only four percent saw TEM as a way of reducing headcount or as an outsourcing mandate.

The AOTMP paper Global TEM: Conquering Time-to-Deploy Pitfalls, stated: “The North American perspective on global TEM is driven by experiencing financial and operational successes. This TEM progression is one method of TEM globalization.” According to Timothy C. Colwell, AOTMP’s SVP of Global Information Management, “Telecommunications is a global business asset. A well planned and executed TEM program enables businesses to gain and maintain control over this valuable asset”.

TEM technology and services are known and widely adopted in North America, with nearly three-quarters of the Fortune-500 currently utilizing a TEM supplier’s technology or services in some capacity. The AOTMP paper explores the different elements of a successful TEM program and provides insight into the challenges and timeframes of Global TEM implementation, including a checklist for companies planning international TEM deployments.

Ben Mendoza, MDSL CEO and founder commented: “it’s good to see US companies rejecting savage cuts in headcount and services as the way forward. Unlike their counterparts in the troubled Eurozone, US enterprises appear to be planning for stability, cost transparency and investment in cost-control over the long-term in order to stabilise their businesses in the current international downturn.

He continued: “Our own experience shows US corporates taking an intelligent long-term view in implementing enterprise-wide telecoms applications which will save them millions of dollars. The example quoted in this white paper realized tangible savings of approximately $8 million, with 11.6 percent savings against a total telecom spend of $44 million in Year One alone. Overall, since the start of the program the business efficiencies introduced through the MDSL TEM solution have successfully reduced total telecom spend by approximately six percent ”.

He added: “TEM is still an emerging market in Europe. The intelligence provided in this research into US deployments and the expertise we’ve gained pioneering the field in the USA will stand us in good stead as the UK and continental markets develop”.

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