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.”

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.