Organizations bear financial risk for maintaining unneeded and underutilized cloud, connectivity & communications services. From our working with hundreds of small to large companies, we’ve summarized the enterprise ICT challenges below in an infographic. It summarises some of the pain areas from the view of a telecom/admin/network manager, the impact of which cascades to the CXOs and across the board.
ICT expenses are one of the major overheads [5th largest] of all corporate & often least understood & controlled. MNC’s, national companies and SME are keenly looking for ways to reduce telecom expenses and to gain control and visibility over their expenditure. To become competitive service providers often introduce new digital products and services on a regular basis and companies are integrating them into their ICT infrastructure to maintain competitive advantage.
Cloud, voice, video, data applications, security, backup are just some of the product and service required by enterprise co-ordinate an integrated digital process. The pure complications are leading corporate to look for total digital management solutions. Enterprises digital expenses are on an average in tens of thousands of dollars per month, still majority of them don’t have formal digital policies in place, no program to deal with ever increasingly ICT spend. Surprising fact is that many of large organizations don’t know exact digital spending.
Impact to Companies without a ICT Expense Management Program
- 7% to 12% of communications service expenses are in error [leakages]
- Organizations underutilize 20%- 30% of their network capacity
- 85% of typical SaaS, Cloud, Connectivity bills are not audited internally [overpayments]
- Lack of visibility across locations, departments
- Increasing complexity in tariff rates, pricing, discounts, taxes, retansl
ICT expenses are typically the 5th largest category of expenses on a company’s P&L statement, yet uncontrolled.