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Sunday, December 20, 2009

Cut Telecom Costs - 7 Quick Tips!!

Cut Telecom Costs - 7 Quick Tips!!

A few weeks ago, I wrote about 5 Cost Cutting tips that are sure to boost your company's profitability. Over the next few weeks, I will dissect each cost cutting tip and provide practical actions that you can implement right away. Since companies are still in the mode of keeping the costs tight, I think you will find this information handy.

The first Cost Cutting tip that I highlighted was “Analyze costs as percentage of Sales.” One such cost that will generally have an opportunity for improvement is Telecom cost. Telecom spending accounts for more than half of all worldwide IT spending, according to Gartner Inc. As such, it can be worth the time to scrutinize bills, identify areas for cost savings and shop around for new providers. To effectively manage telecom spending, the first step is to find out exactly what you have and use, by analyzing your inventory and contracts. Take inventory on all lines and services; you may find that though your company has shut down offices or lost employees, you continue to be billed for these services.

Who manages spending on telecommunication services differs depending on the company’s need, size and budget. For instance, at Nortel where I had a long career, there was a global IT executive who was responsible for managing telecom spending. At smaller companies, it’s often the business owner who is in charge of telecom spending. Other companies outsource their telecom expense management to Telecom Consultants who can dedicate the time to ensure optimum savings. Third-party telecom providers can help assess spending, automate billing and negotiate contracts on behalf of the customer. These service providers are especially helpful in contract negotiations because they’re already familiar with the telecom carriers, their offerings and where they’re most flexible for cutting costs.

Here are 7 quick ways to begin cutting your Telecom Costs. If you follow these steps, you could reduce your Telecom Cost by 10%+.

1. Determine the proper local service plan for your needs – then modify if necessary.

2. Remove unnecessary or unused lines, features and services.

3. Block expensive pay-per-use features.

4. Review the summary section of your bills every month.

5. Consider upgrading to a T1 if you have more than 20 lines.

6. Gather customer service records (CSRs) from your Local Exchange Carrier (LEC) for more detailed local service analysis.

7. Consider engaging a telecom consultant for telecom auditing, bill management or telecommunication services.

Time is money. If your staff is not prepared to consistently implement the above tasks, consider engaging a professional telecom consulting firm to handle them for you. The initial telecom audit will undoubtedly turn up many areas for potential cost-savings.

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Dan Young is President & CEO of Young Consulting Group, a boutique business consulting firm, focused on helping owners grow their business. Young Consulting Group provides Telecom Consulting services for companies in the Small Business Sector. For your FREE Telecom Cost Analysis, call us at 954.320.4693 or email us at info@YoungConsultingGroup.com. You can also find more Business Growth ideas by going now to http://www.YoungConsultingGroup.com.