Unpacking Gartner’s 2024 TEM Market Guide
The latest Market Guide for Telecom Expense Management Services from Gartner is out and includes market trends and customer feedback on the major providers in the Telecom Expense Management (“TEM”) services space.
In this 12-minute podcast, Theresa Knutson and Julie Gardner join Tony Mangino to discuss the latest from Gartner and provide their unique perspective on the TEM marketplace. Listen as Theresa and Julie reveal key insights on sourcing and implementing TEM services and how to extract maximum value from your TEM supplier by conducting a “health check” review.
If you would like to learn more about our experience in this space, please visit our IT Cost Management webpage.
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Unpacking Gartner’s 2024 TEM Market Guide
The latest Market Guide for Telecom Expense Management (TEM) Services from Gartner, published on November 18, 2024, provides a comprehensive overview of the current state of the TEM industry. This detailed report delves into the major providers, key findings, market trends, and customer feedback, offering valuable insights for businesses navigating the TEM landscape.
Key Findings and Market Trends
The report highlights several critical trends in the TEM market. Due to heightened cost pressures, TEM services have become more crucial than ever. However, a recurring theme from previous market analyses is that customers are often dissatisfied with their current TEM environment. Managing a TEM is complex, requiring a thorough understanding of contracted services and costs, and effective governance is essential. Additionally, TEM costs are likely at a floor, with clients demanding more services, potentially driving up support costs.
The Role of AI in TEM
Artificial Intelligence (AI) is increasingly being integrated into TEM services. Organizations are exploring advanced analytics and AI-driven capabilities to optimize telecom expenses, ensuring every service contributes measurable value. The concept of “Zero Touch TEM” is emerging, aiming to automate and streamline TEM processes. However, the knowledge gap in the industry is widening as experienced professionals retire or are laid off, making AI a critical tool to bridge this gap.
Leading TEM Providers
The report identifies several leading TEM providers prominently serving large enterprise clients. These include Asignet, Calero, Cass, Sakon, and Tangoe, all of which offer robust global TEM service coverage8. Brightfin, based in Colorado and built natively on ServiceNow, is also gaining traction, with its spend under management doubling since 2023. The differentiation among these providers lies in the accuracy of their data, the quality of their reporting, and the expertise of their auditors.
Common Issues and Solutions
One of the most common issues in TEM relationships is a lack of governance by both customers and providers9. Customers need to provide accurate and up-to-date data to their TEM providers and review inventory and reports regularly. Providers, on the other hand, often overpromise and underdeliver, leading to customer frustration. Effective governance and clear communication are essential to improving these relationships.
TC2’s TEM Health Check Service
To support clients in navigating these challenges, TC2 has introduced a TEM Health Check service. This service involves reviewing the contract with the TEM provider, assessing the data in the platform, and providing feedback to improve services. The findings from these reviews have revealed significant issues, such as TEMs paying past due balances without investigation and inaccuracies in inventory reporting. Addressing these issues can lead to substantial cost savings for clients.
Conclusion
The TEM industry is dynamic and evolving, with AI playing an increasingly important role in optimizing telecom expenses. Effective governance and clear communication are crucial to successful TEM relationships. Businesses should consider leveraging services like TC2’s TEM Health Check to identify and address gaps in their TEM environment, ensuring they receive the best possible value from their TEM providers.
