Summary
In this article, we explain how Technology Expense Management (TEM) has evolved over the years, to encompass a broader range of IT services. TEM offers a centralized platform that manages IT assets, tracks usage, controls costs, and handles vendor contracts. These features provide much more than just financial oversight.
While TEM is widely recognized for its cost optimization and budget management benefits, this article highlights the advantages that are often overlooked. Said benefits include:
- Improving operational efficiency through automating routine tasks
- Offering real-time visibility into asset databases for quicker decision-making
- Centralizing order management to streamline procurement processes
- Enhancing service-level agreements (SLAs) by monitoring vendor performance
- Mitigating risks through advanced security features and unified endpoint management.
- Tracking the carbon footprint of IT assets
- Promoting energy-efficient practices
- Supporting the responsible disposal of electronic waste
This article ends by reaffirming that while TEM is so much more than cost optimization, its ability to save time, reduce risks, and support strategic decision-making indirectly impacts a company’s finances and bottom line, making it an invaluable tool for managing the digital workplace.
What is Technology Expense Management?
Previously known as Telecom Expense Management, Technology Expense Management (TEM) offers a centralized software platform that manages IT assets, their usage, their cost, their contracts and a multitude of other advantages. Unlike Telecom Expense Management, which exclusively focused on telecommunications services, Technology Expense Management includes IT services such as voice, data, internet, cloud services, and mobility.
What is Technology Expense Management known for?
Companies sourcing Technology Expense Management solutions mainly want to optimize their IT costs; they seek assistance with negotiating better contracts with vendors and reduce their expenses by eliminating any unused or obsolete assets, whether it be equipment or subscriptions.
Businesses also wish to ensure they’re not overpaying for services and can have quick access to the entirety of their IT budget and expenses.
A quick Google search on Technology Expense Management benefits will show articles focused on the cost optimization for TEM – hence the “Expense” in “Technology Expense Management” – budget management and other finance-related services. The financial ROI is so prevalent that some articles cite these benefits as early as in the introduction paragraph, and even use cost optimization as the definition of TEM. However, those same articles will only briefly mention – or ignore altogether – any benefit that is unrelated to reducing expenses. Saving time and effort is equally just as valuable for a company’s ROI. This article breaks down one-by-one each of the overlooked benefits of Technology Expense Management.
The Overlooked Benefits of Technology Expense Management
Operational efficiency
Companies working with Technology Expense Management providers will achieve higher operational efficiency. TEM standardizes and automates routine and time-consuming processes, such as invoice management, expense allocation and vendor management, to name a few. Automated processes eliminate the need for manual data entry, thus cutting down the time spent on administrative tasks. With the added free time provided by streamlined processes, IT and finance teams can focus on tasks that drive business growth.
Human expertise
Technology Expense Management adds significant human value by relieving companies of the technical and administrative tasks involved in day-to-day tool management. By benefiting from the expertise of specialists in data management and customer support, companies can ensure that their platforms are running optimally, without having to worry about updates or regular monitoring of solutions and data quality. This support eases the burden on customer teams, while ensuring continuous and accurate asset management, enabling companies to focus on their core business and priority objectives.
Real-time visibility of the entire asset database
TEM accelerates the decision-making process by providing data and analytics on technology expenses and usage trends. This visibility allows decision-makers to quickly assess the current state of technology assets and expenses without waiting for periodic reports.
A single platform consolidates all data. This approach centralizes all information in one accurate source, which allows all stakeholders – even those from different departments – to access the same information. Furthermore, Technology Expense Management facilitates cross-departmental communication, since everyone can see the same data, regardless of the department they work in. A single platform eliminates discrepancies and inconsistencies that can arise when data is scattered across multiple departments and systems.
Operational and financial advantages are interconnected, and companies cannot benefit from one without the other.
Centralized order management
TEM platforms also centralize order management. This feature significantly improves the procurement and tracking of technology assets. From the moment companies place an order, TEM systems manage the entire lifecycle, such as:
- Efficiently process purchase orders
- Deliveries are tracked in real time
- Maintain accurate records
This increased visibility and control not only ensures that the right equipment is available when needed but also prevents costly errors and delays. By automating and optimizing order management, businesses can reduce administrative burdens, improve vendor relationships, and ultimately increase operational efficiency, all while keeping technology expenses in check.
Improved Service-level agreement (SLA)
TEM platforms provide detailed performance metrics, allowing organizations to track key indicators such as response times and issue resolution times. These KPIs help accurately assess vendor performance against Service-Level Agreement goals. This enables organizations to identify top-performing vendors and negotiate more favorable SLA terms, ensuring higher service standards.
Real-time SLA monitoring provides immediate visibility into any deviations from agreed-upon service levels, allowing organizations to promptly address issues and ensure consistent vendor compliance.
Technology Expense Management platforms maintain detailed records of all interactions and transactions with vendors and conducts audits that hold vendors accountable for their performance and compliance with SLA terms. TEM platforms also enable customizable SLAs, allowing organizations to define terms based on specific needs and priorities.
Risk mitigation
Most articles about Technology Expense Management briefly mention this benefit; however, most experts do not delve deep enough into the topic of risk mitigation. To protect sensitive financial, inventory, and usage data, TEM platforms often include advanced security features such as data encryption, multi-factor authentication mechanisms (MFA), intrusion detection and prevention systems (IDPS), as well as data masking. These features are compliant with the General Data Protection Regulation as well as the ISO 27001 security standards.
In addition to these robust security measures, integrating Unified Endpoint Management (UEM) further strengthens risk mitigation. UEM provides centralized management of all endpoints, ensuring that every device within the TEM platform adheres to strict security policies and configurations. This unified approach helps detect unusual activities that could indicate fraud, such as billing errors or unauthorized access. The TEM tool sends an automated alert whenever it identifies an anomaly.
TEM solutions, combined with UEM, typically undergo regular disaster recovery testing to ensure that all processes work as expected. In the event of a cyberattack, data can be quickly recovered via the backups that TEM performed regularly prior to the disaster. Even if data is compromised during a cyberattack, it will remain unreadable to outsiders due to encryption, while multi-factor authentication and SSOs ensure that only authorized personnel can access the TEM system and its information. Throughout the attack, TEM and UEM continue to monitor for suspicious activities, mitigating any additional threats that might arise when the organization’s defenses could be perceived as weak.
Lessen the environmental impact of IT
Not all Technology Expense Management platforms offer this feature. However, both the planet and your company’s reputation benefit from putting effort in reducing IT carbon footprint. Especially as Green IT and eco-friendly practices in the technology industry continue to gain traction and recognition.
By tracking the carbon footprint of IT assets and services, TEM can provide a clear understanding of energy consumption and emissions released by each individual IT asset, enabling targeted efforts to reduce the environmental impact. It promotes efficient asset lifecycle management, ensuring proper maintenance, upgrades, and timely replacements, which extends the lifespan of IT equipment and minimizes electronic waste.
Technology Expense Management identifies underutilized or redundant assets, giving the TEM provider the ability to optimize through resource use and lower energy consumption. It encourages the adoption of energy-efficient practices, such as consolidating servers and optimizing data center operations.
TEM also supports sustainable procurement by helping organizations choose energy-efficient hardware and eco-conscious vendors. Technology Expense Management providers ensure that vendors meet high sustainability standards, such as using renewable energy, offering products with low environmental impact, and adhering to ethical supply chain practices. Additionally, TEM typically offers mobile device depot services, either through partnerships with certified recyclers or internally. These services consist in collecting obsolete IT devices to either recycle or repurpose them. This practice reduces the environmental harm caused by discarded electronics while often putting money back into the company’s pocket.
Conclusion
Technology Expense Management is a comprehensive solution that manages the entirety of the Digital Workplace, from IT expenses to helping the planet.
It is important to note that even the benefits unrelated to cost optimization will indirectly impact your finances and overall bottom line. Less time spent on administrative tasks means more time spent strategizing on how to generate more profits. Real-time visibility for assets, including their expenses, allows stakeholders to make informed finance-related decisions quickly. Additionally, minimizing the risk of cyber-attacks prevents future financial losses due to security breaches. After all, time is money, and every moment spent managing inefficient processes or partnering with vendors who don’t align with your sustainability goals translates to a missed opportunity to drive both financial savings and a positive environmental impact.