If your business is involved in a turnaround process, or you need to save money for some other type of emergency, you can consider a communications overhaul. This is possible because the telecommunications configurations (data, voice, other) of most medium-sized businesses over time tend to become disorganized.

Although some businesses keep their telecommunications functions well organized, most are in disarray and a significant amount of savings can be realized quickly by performing a quick overhaul.

If your company has a PBX telephone system with a lot of incoming lines it is a good bet that these lines are not being used optimally. With the recent increase of alternative forms of communication, it is likely that some of the capacity associated with those lines is being wasted.

Many of those telephone lines that come into the PBX are likely being used by the customer support and customer service departments, but staff members likely use other methods of communicating such as email, personal cell phones, among others.

Your job is to identify this unused capacity and disconnect those resources associated with it. The trick will be not to get too involved in the process.

With any revamp of technology configurations, there will be possible many long-term improvements and a few highly productive (in terms of cost reduction) changes that can be made quickly and easily.

For example, if you have a PBX and it is maintained and programmed by an external company. Suppose you bought it from a telecommunications vendor and they programmed it initially, and your local Information Systems department performs minor maintenance but nothing complicated; maybe they program telephone extensions and manage simple call groups or some other superficial function.

Although you may believe that your local support people have been keeping everything optimized, this is hardly ever the case due to the complexity of telecommunications systems and the large number of changes in a typical business.

To get a quick cost reduction, bring in the vendor of your telephone system and have them perform a quick resource evaluation to determine any optimizations that can be made.

The process can be messy because you will be working from two sides. On one side, you have the actual phone system and the physical lines and other resources; on the other side you have all of the monthly bills from the telecommunications provider.

The other aspect is the actual business environment and what it requires in terms of resources. This is the part that can get more complicated, but there may also be some savings there as well.

Usually, matching the requirements of the business environment to the resources is a long drawn out process because it must take into account business growth and other factors.

Your primary goal during a turnaround is to identify the quick cost reduction items, so you can make a note of these longer-term action items, but stay focused on the simple tasks now.

To illustrate this process, I am going to give you a simple example, and in this example, I am going to only tell you about one aspect of the many things that were evaluated.

Our goal was to optimize the telecommunications processes in the company and to reduce short and long-term costs. Although we investigated various aspects of the voice and data configuration, I will focus only on the voice situation we encountered.

Our first step was to identify the physical telephone lines the company was paying for. We gathered together the various monthly statements for these lines. Upon reviewing them, we discovered that the company was paying for approximately 70 incoming physical lines (voice/fax/other).

This particular telephone system had about 40 lines coming in and there were several fax machines located throughout the two main office buildings, along with some other individual lines that were hooked to various telephone management programs, but the other lines listed on the statements were a mystery.

After a thorough investigation and search, we determined that the remaining lines were being paid for but not being used anywhere. They had been installed over the years for various reasons but had somehow never been disconnected. They simply terminated at the wall, and were still carrying a signal, but no device was hooked up to them. And they were still being paid for!

The total savings on these lines alone translated to several hundred dollars per month, and thousands per year.

We also determined a better way to optimize resources on the telephone system, and we were able to eliminate several more lines right away by evenly balancing the overall system call load.

We ultimately installed a new phone system, but that came many months later in the overall process. I use this example to illustrate the extreme savings that may be lying just under the surface and easy to find.

You can also work with vendors to obtain volume discounts and term agreements for further savings, but these also are longer term and beyond the immediate cost reduction goals of a turnaround.

Another thing you can do for quick savings in the telecommunications area is to terminate any cell phone accounts that are being paid for by the company.

Even though most will be on a term agreement, you can still save by terminating them early and stopping all activity on these accounts. This will return transparency to the process and eliminate a big expense. It will also put a stop to a lot of personal phone calls and texting, along with the time wasted.

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Telecommunications consultants usually are the people to whom corporations outsource the work of Telecommunications Expense Management (TEM). Telecom Expense Management deals with collecting data about current telecom expenses and finding new methods of reducing these expenses. Telecom consultants use several methods to obtain data about the current telecom bills and see where most of the money is being spent. They can ask the designated telecom service providers to provide the telecom invoices for the company as well as the applicable telecom tariff. The telecommunications consultant can then use the invoice to see if the charges made to the company were abiding by the rates on the tariff.

Another method of evaluating the expenditure of the company on telecom expenses is by installing telecommunications management software on all the corporate systems which are attached to a company phone. This is particularly useful for call centers as nearly all of their phones are connected to a computer. The software could be bought off the market or could be made on order by a person or a company. What the software would do is that it would present you with the expenditure on a specific service such as the worldwide and local calls as well as calls to landlines or mobile phones. All of this would help the Telecom Expense Management Company get insight on the spending pattern of the company which would in turn help in planning the steps that should be taken to reduce the telecommunication expenses.

Telecom Expense Management companies take a look at the individual expenditures of the people of a company on telephones to gain data about where calls are made and which departments or posts have the highest usage of telephones. This may give them info about the fundamental workings of the company and provide them with valuable information such as which person is using up more minutes than necessary and in which department can there be changes made to reduce the number of calls. If the company has handed out personal wireless phones to employees then the TEM Consultant will have to use Wireless Expense Management techniques to gain info about the calls made by the employee. Information of the calls made by employees can be gained by asking for statements from the service providers and checking if the person is not abusing his mobile phone usage for personal purposes. An example of this would be that if a person makes several lengthy international phone calls to non-company numbers, it is most likely that the nature of the call was personal.

Companies wanting to hire a Telecom Expense Management firm may also provide the information and data about the company’s telecom expenses themselves which is a good cost–cutting measure and it helps reduce the time taken for the TEM firm to gather all the data. The telecommunications consultant then uses this data to give a breakdown of expenses which he or she thinks is either not of much use to the company or where optimization can occur and if he/she believes that the expense is fundamental to the working of the company, the consultant may leave the expenditure as it was. The analyst can also compare the tariffs of the telecom company to the competition to see if its rates are good enough or the contract should be awarded to another company.

There are several companies which offer services of TEM such as www.TelecomExpenseManagement.com and these can help your business to reduce the expenditure on telecommunications bills by a pretty large margin and provide you with telecom cost savings which you can invest in other areas for maximum growth.

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Buying Refurbished Cell Phones

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Daily links

March 22, 2011

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The Future Of Mobile Internet Is 4G Technology

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4G in simple terms means fourth generation mobile technology, it’s a name given to the International Mobile Telecommunication’s advanced standards which have been set by ITU (International Telecommunications Union). What these standards mean are download speeds of up to 1 gigabit per second while accessing the internet wirelessly. According to the ITU, 4G is the [...]

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Sony Ericsson – Redefining the Mobile Phone

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Thanks to Sony Ericsson’s product innovation, mobile phones today will never be the same again. It used to be bland, boring and pretty much useless outside of being confined to what a bare communications device on the road is. Now, it’s a mobile gadget many people are entertained with while on the road. It has [...]

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Achieve Effective Business Communication With Orange Business Mobiles

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In this world of fast globalisation, different means and media of communication are making their way into business arena. Mobile phone is one such media for making communication possible between two or more than two parties. The corporate sector has always been vying for a business communication device equipped with all the recent softwares and [...]

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How to Trace a Cell Phone Number Owner – Tips on How to Trace a Mobile Phone Number Owner From Home

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So many people are looking for information on how to trace a cell phone number owner due to a million and one reasons. The reasons are so many, the commonest ones are : To nail a prank caller To catch a cheating spouse To catch unfaithful/cheating spouses To research unknown phone numbers on caller id [...]

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T-Mobile Phones Satiate the Needs of All Mobile Phone Users

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T-mobile phones are the world’s largest selling mobile phones. Primarily, T-Mobile Inc. is a telecommunications company operating worldwide. Along with communication services, it also sells many latest mobile phones. It has tie-ups with the international giants and reputed mobile phones manufacturing companies of the world. Some of these associated giants of T-Mobiles are Nokia, Samsung, [...]

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