Friday 27 June 2008

How to cut business comms costs without sacrificing quality

Natalie Apostolou

The wireless business world is a no longer a concept but a fact, the humble mobile phone, Blackberry and iPhone have transformed our work concepts of being tethered to the ‘physical’ office. As handset manufacturers stoke our aspirations with desire for the latest gadgets such as the 3G iPhone, companies will be spending even more money on keeping their staff mobile, accessible and digitally on par.

I guess the question has to be asked... when does the price for this technology outweigh the productivity staff achieve through having increased mobility?

The proliferation of 3G smart devices such as the iPhone and Windows mobile devices has seen an increasing number of business applications written with mobile devices in mind. For example, many leading Enterprise Resource Planning (ERP) systems, including those by Microsoft and Systems Applications and Products (SAP), interface with mobile devices.

It must become a priority for businesses to assess their telecommunications costs and review the money they spend on the upgrading their products with the latest gadgets on the market.

There is no better time... as the end of the financial year is upon us to stop and assess our telecommunications costs as we could you could end up saving your company thousands by following some simple tips.

BE ASSERTIVE

Don’t be afraid to demand things from your supplier. Ask your supplier if they offer a dedicated account manager who is focused on supporting your business and responding to its needs. The more responsive your provider is, the more flexible your business will be in meeting your clients’ demands.

You know your business better than anyone so make sure you sit down and talk to your potential supplier about your business and what they can offer because it is important to get an understanding of their services before you lock your company into a contract.

1. EXPERIENCE IS KEY

Deal with a supplier who has the industry knowledge and experience to ensure the smooth operation of your business communications needs. If a supplier has worked with other companies in your sector, they will bring with them a more in-depth understanding of your business challenges and unique needs resulting in a best-fit solution and speed in delivery.

There are an abundance of plans and options on the market, presenting businesses a myriad of factors to consider. That is why it is important companies need to find the best-fit supplier- one that is flexible and nimble in its approach so that it can provide the right solution at the right price.

It is also important to have a comprehensive understanding of what is happening in the market when it comes to technology and improved telecommunications and digital concepts. For example mobile social networking is set to rapidly increase over the next five years. Already people with mobiles can connect quickly to social networking sites such as Facebook and MySpace. Therefore it is important for companies to embrace technological change and accommodate their telecommunications packages accordingly to get the best value for their money.

2. CUSTOMISE YOUR BILLING

Ask your supplier if they offer single billing options that encompass all your data, voice carriage (mobile and fixed), telephony systems and maintenance/support costs. This can provide immediate cost savings to your administration and accounting functions. If your current supplier does not offer this, it is worthwhile finding one who does.

3. CENTRALISE COSTS

Ask your supplier if they provide renting or leasing finance options for your business communications equipment such as telephones, routers, mobiles etc. This way you can move the expense of your communications costs off your balance sheet, free up cash for future investment in your business and provide a highly effective offset against tax expenses.

4. CONSOLIDATE

It is more cost effective to consolidate internet, data, fixed voice and telephones with the one supplier. One of the biggest mistakes companies make is using multiple suppliers. Many companies have a number of different suppliers for their communication needs. For example, they might have their website hosted by one supplier, their phones with another and their broadband with someone else. This is initially done to save businesses money but ends up costing more in the long run when administration costs and the hours spent managing suppliers is evaluated.

Change the way you account for your telecommunication and internet expenses by consolidating your data, voice carriage (mobile and fixed), telephony expenses, and maintenance / support costs in to a single facilities management option. This will allow you to generate a clear cost of business communication delivery measurement for each employee of the business and in turn gives you a much more cost effective way to budget for your business.

If companies want to be more in control of their financial results next year, it is worthwhile taking the time to review closely the set-up of their business communications expenses and applying some of these tips to save thousands of dollars.

Ian Renwood is Sirocco Telecoms managing director

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