It is the long-term goal of every company to keep operational expenses low. With the unstable global economy, it’s imperative to safeguard financial resources in order to sustain the business.
One of the most effective strategies employed by smart enterprises is identifying aspects of operations where cash outflow is high and determining if the expenses in those areas are justified.
For example, advanced telecommunication technology is one of the pillars of successful operations. However, reports reveal that most companies overspend on telecom by as much as 40 percent every year. The overspend does not only stem from the fact that mobile data packages are expensive; it’s also due to the incompatibility of the data bundle with the business’s activities.
The Wrong Data Package Rakes in Costs
There is no denying that it is a must for progressive businesses to invest in data packages, especially now that employees rely more on wireless technology than traditional modes of making connections with other people and organizations. However, the cost of these data packages often turns out to be higher than necessary due to fancy extra features and functions.
All the extras included increase the cost of data packages, setting companies back by a hefty amount. The problem is that these features may not even be valuable to the business. This means companies are paying for services that they are not using, or that are actually causing the employees’ productivity to go down (such as games).
How to Manage Escalating Data Costs
To control overspend on data packages, business strategists recommend the following solutions:
1. Conduct expense reduction analysis
Through this process, businesses get a better idea of their telecom spending and in the process unlock the ways they can cut costs without sacrificing the quality and efficiency of their operations. This often entails an audit of contracting and procurement methods as a potential source of cost reduction. As such, it creates the opportunity to rethink supplier relationships.
With wireless data for operations, for example, after an expense reduction analysis is carried out, most companies are prompted to do either of these two things: renegotiate their contract with their service provider, or shop for a new one.
Whichever of these two options the company chooses to go with, the outcome is always a better and more cost-effective deal.
2. Invest in telecom expense management (TEM) software
Since a significant amount of money is allocated to telecommunications, there should be transparency with the usage of data packages for wireless connections. Cloud solutions such as enterprise resource planning and telecom expense management software can create this transparency.
Expense management software can gather valuable data on usage, such as who was using the mobile device and the reasons why it was used. So if the company had chosen a pricey roaming package for employees who travel overseas, the software can determine if the employees are only using it for work-related activities, as they should.
3. Revamp your work culture
Creating strict rules or policies regarding data usage can help reduce costs. The problem with a lot of employees handling mobile devices provided by the company is that they have the tendency to go wild with their data plan.
It is critical for companies to reinforce rules to mitigate mobile costs and irrelevant usage so the business can avoid shouldering excessive expenses that do not even provide benefits in any way. These rules will create a different mindset for employees and also modify their behavior so they will not rake up unnecessary charges, and the business can save money.
4. Create customized data packages
Most service providers already have “designed” packages that clients can choose from. However, it important for businesses to not simply settle for what is available. If you are a business owner and you feel like the data bundles that service providers offer do not fit the needs of your business, do not hesitate to negotiate.
Today’s service providers are flexible enough to accommodate specific requests. They can design a data bundle for your business that addresses your specific suite of needs.
If your current service provider refuses to yield, there are others you can turn to that will be more than happy to strike up a good working relationship with your company. After all, you are bringing them business, and they are aware that if you are satisfied with their provision, they can expect a fruitful long-term relationship with you.
These strategies have been proven to work because they account for the cost, and at the same time, solve the various situations that contribute to the growing cost of data. With these, businesses can regain control of their finances and ensure their future in the industry.