Here we are – the middle of 2023 and there is still uncertainty about a pending recession. There are signs of a slowdown in the SMB market and many businesses are revising their plans for the remainder of 2023.
It’s always a good time to reduce expenses, recession or not. For many organizations, telecom expenses are one of the largest recurring monthly costs and yet cost reduction opportunities are typically ignored. Most organizations routinely and automatically pay the telecom bills as they are received without reviewing the accuracy of the charges or the level of services against their needs. It feels too complicated to deal with.
Now, faced with a possible recession, companies are actively seeking areas to reduce costs. These should include telecom and internet technology expenses. Our consultants have helped thousands of businesses lower telecom and technology costs.
Here are the Top-Ten Actions you can take:
- Evaluate Service Providers
- Review your existing contracts and service agreements.
- Seek competitive bids from alternative vendors.
- Renegotiate contracts with current providers.
- Explore bundling services for potential cost savings.
- Optimize Infrastructure and Usage
- Assess your current telecom and technology infrastructure.
- Conduct a thorough analysis of usage patterns and bandwidth requirements.
- Adjust plans, bandwidth, or configurations to match needs.
- Identify underutilized services for which you may be overpaying.
- Consolidate Service
- Consolidate services to streamline operations and reduce costs.
- Consider merging voice and data services, centralizing network management, or migrating to unified communications solutions.
- Implement Cost-Effective Communication Tools
- Explore Voice over IP (VoIP) solutions, instant messaging platforms, or video conferencing systems.
- Embrace Cloud Computing
- Leverage cloud-based services and applications to reduce on-premises equipment costs.
- Cloud computing offers scalability, flexibility, and cost optimization by allowing you to pay for resources and services on-demand.
- Consolidate Hardware and Software Licensing
- Streamline hardware and software assets by consolidating licenses.
- Eliminate duplicate or underutilized applications.
- Centralize software licensing management to optimize license utilization.
- Negotiate volume discounts with vendors.
- Encourage Remote Work and BYOD Policies
- Promote remote work initiatives to reduce office space requirements.
- Adopt Bring Your Own Device (BYOD) policies to minimize the need for company-provided equipment.
- Energy Efficiency and Infrastructure Management
- Optimize power consumption by implementing energy-efficient technologies and practices.
- Consolidate data centers to reduce infrastructure and cooling costs.
- Consolidate servers through virtualization to optimize resource utilization.
- Employee Training and Technology Awareness
- Educate employees about cost-saving measures to reduce unnecessary usage or printing.
- Explore alternative, cost-effective tools and practices to reduce costs without compromising productivity.
- Continual Monitoring and Optimization
- Monitor expenses to identify areas in which costs can be reduced.
- Conduct periodic audits to ensure billing accuracy.
- Negotiate better rates based on usage patterns and market conditions.
It’s important to strike a balance between cost optimization and maintaining the necessary technology infrastructure and capabilities to support business operations effectively. Consider the potential long-term impacts of cost-cutting measures and prioritize those that align with your business objectives and growth strategies.
Abilita consultants are experts in providing a thorough audit and review of all telecom services. And with our contingency billing model, there is no up-front cost or obligation. We invite you to give us the opportunity to reduce your telecom expenses.
Take a look at this short video to learn more about how we can help: https://abilita.com/solutions-tem/