Problems include not knowing the exact services you have, SLA’s for providing the service and whether or not you’re paying too much. Recognizing the “whether or not” in itself is an enormous problem and a difficult task. However, there are unique service offerings and software based toolsets which companies can take advantage of to fully understand their current vendor environment.
IT costs are often seen as a small percentage of business expense, generally sitting under 5% of overall business expenses. Many leaders in the past have focused on larger areas, avoiding taking a deep dive into IT cost because there are often complexities (multiple locations, deep-dive auditing of bills, managing a renegotiating contracts) for a small return in cost savings.
It happens all of the time. Clients that audit their own billing and manage their own contracts spend wasted hours trying to sort out the fees and promo plans service providers offer. In the end (months later) they realize how much time and energy they spent trying to sort out the very complicated terms, renewals and plans that should have been crystal clear from the beginning. No customer should have to feel they are “in charge” or have to be “on the watch” for changes in their contracts and agreements especially those “1 year promos”. Shouldn’t the service provider INFORM their customer more clearly of any changes going into effect, clearly state them and offer cost saving OPTIONS? Well that is NEVER going to happen!