Phil McDonald of CarlsonHospitality company Carlson, whichowns such familiar brands as Radisson Hotels, T.G.I. Friday's andthe Carlson Wagonlit business travel service, is reaping vastsavings with its new telecom expense management (TEM) provider,whose services go beyond the standard approach of identifyingcarrier overbilling.

According to a recently published Gartner research note,companies that outsource TEM for their fixed lines could save from16% to 32% of overall fixed-line spending in the first two years,and from 5% to 11% in subsequent years, by avoiding costs,recapturing overpayments and staff reductions. If a company wouldrather implement TEM as a managed service, those returns drop to a4% to 15% savings in the first two years, followed by annualsavings of between 4% and 8%.

“Identifying overbilling is the raison d'être for TEM,” saysPhil McDonald, director of sourcing operations at Carlson, whichhad $5.4 billion in 2011 revenue. “Carriers are notorious [for]invoicing incorrectly.”

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