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.
Companies, Organizations and Businesses can easily incur monthly expenses ranging from thousands to tens of thousands of dollars each month. Managing the financial component of vendors can be a nightmare! Looking at just telecom you have: Multiple carriers, multiple contracts, introductory offers, equipment, and different locations. Just these factors can lead to poor financial management and procurement processes.
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.