4 big questions you should be asking TEM providers before you sign the contract
Every major multinational corporation requires the very best from its TEM providers. A great communications network is essential for the world’s biggest companies, and there is a huge potential for savings and improved efficiency within these multi-billion dollar departments.
But these enormous tenders don’t come up too often and when they do, every TEM provider on the planet will be jostling for the business. C-suite executives can expect to be wooed with a series of attractive discounts, one-off deals and exclusive partnerships, but these should be greeted with more than a little caution.
It may have occurred to you whilst reading this that it is unusual for a TEM company to be sharing some of the ins and outs of our industry…
In the competitive world of TEM, it really pays to read between the lines and know exactly what you want (and what you don’t want).
Here are the 4 big questions you should be asking TEM providers before you sign the contract
- Can I have a demo?
If you are in the market for a new TEM solution, the first question you’ll need to ask is: how does it work?
Every TEM provider will tell you that their product is the best, so in order to wade through the hype, you need to see a demo. And not just a demo of the latest slick feature, but a full demonstration of how the TEM software will be used on a daily basis.
Before meeting with TEM providers, think about some of the operational issues you had with your last supplier, and make a point of checking these during the demo. Don’t be afraid to ask for several different presentations, and if anything seems unclear – flag it up.
A good TEM system will be logical, transparent and easy to use – don’t be talked into buying something that looks good but makes no sense.
- How will the costs be invoiced?
This may seem like a small consideration, but in a huge company it can represent millions of dollars. Why? Because most TEM providers charge per line item, and your interpretation of a line item could differ wildly from theirs.
Big firms are likely to be handing their TEM supplier an inventory list with thousands upon thousands of different line items, so one misunderstanding can be extremely costly.
For instance, you may consider an MPLS connection to represent one line item, which is being charged at a flat monthly rate of, say $40. To the TEM provider, one MPLS system may include four or five different billable elements such as a port, a router, access to an offsite server, etc. Before you know it, your $40 flat rate has ballooned to $160.
When you are managing a multinational network of telecoms products with thousands of different line items, these costs can make a huge impact, so you better make sure that there is no room for ambiguity in the figures before you sign a contract.
- When will I be able to see the savings?
A great TEM system should wind up saving you money over time, and your provider may argue that these savings will essentially cancel out any setting-up fees and line item fees in the long term. Again, be cautious. The entire point of a TEM system is to save your company money. It’s just a question of how much money you can actually save, in real terms.
Once you’ve signed the contract TEM companies will take a full inventory of your line items based on your paper and electronic invoices. They will then have a full rundown of your internal operations, vendor lists, and contracts and in some cases immediately it will be clear to see where savings can be made or even worst they have all of your data but haven’t got a clue how to drive savings because their poorly designed systems aren’t capable of flagging up savings opportunities. Now as the end customer you’ll be sat there waiting for the promised savings to be delivered. You might get there in the long run but your TEM provider might suggest, in order to make those savings, you will have to request and pay them to perform an audit. And who better to perform the audit than the supplier that already has access to your entire inventory?
In order to avoid unexpected costs or even worst lost savings, in your first year under contract, set clear objectives and goals with your TEM provider from the outset, and plan ahead when it comes to saving money. There is no reason why you can’t kill two birds with one stone, as part of your TEM inventory discovery ensure that you include a cost savings network optimization program to drive the most value for your organization.
- Do you offer a self-hosted solution?
A self-hosted solution isn’t for everyone, but for a big corporation with a significant TEM commitment, it may be worth considering at some point.
Most TEM providers want you to outsource everything to them so that they become indispensable. Outsourcing has its advantages – you have the increased security of holding vital financial information off-site, and you can take advantage of the larger storage capabilities of the cloud. However, if your TEM inventory and vendor lists contain sensitive information, you may prefer to hold it within your company’s own firewall.
Find out what sort of hosting solutions are available to you, and what level of access you will have to your TEM systems on a day to day basis. This may not affect your business now, but it could become a major consideration in the future.
Conclusion
It may have occurred to you whilst reading this that it is unusual for a TEM company to be sharing some of the ins and outs of our industry… but that’s exactly the point! One of our goals is to shake this legacy space up. The point we’re aiming to get across is that temforce is not your typical TEM provider looking to overcharge you for a service that your business can control best.
Our goal is to help your get organized and gain control so that you don’t need to audit your network ever again but more importantly you have a system which manages your cost going forward.
Temforce is a provider of Telecom Category Management SaaS enabling teams to boost their Telecom Management!