Atlanta, Georgia (PRWEB) April 30, 2014
NPI, a leading spend management consulting firm, warns that enterprise network overspending is expected to increase in 2014. NPI’s team of telecom expense management analysts has cited the top culprits for network overspending in the coming year – including misleading cost savings models, overbuying and poor vendor pricing transparency. These areas underscore the complexity of today’s network cost management and purchasing environment, as well as highlight the need for additional vendor and pricing intelligence throughout the sourcing process.
“Despite vendors’ promises to simplify the network and reduce total costs of ownership, visibility into network spending is at an all-time low. If companies want to rein in network costs in 2014, they need to understand where they are most likely to overspend and manage their vendor relationships and contracts accordingly,” said Jon Winsett, CEO of NPI.
Overspending on network infrastructure and services – including VoIP services, SIP trunking, managed network services, cloud-based Internet gateways and access lines – occurs for a number of reasons, including:
NPI advises companies to benchmark their network purchases to establish fair market pricing targets. Vendor and provider TCO models should be vetted using fair market value rates for both current network assets and offerings under consideration. Buyers should also use vendor-specific market data to identify pockets of excess margin where additional savings can be achieved during the contract negotiation process. Lastly, companies should think twice about volume purchasing arrangements, performing deep analysis to establish the “just right size” investment.
For more information on NPI’s telecom and IT cost management services, visit http://www.npifinancial.com/cost-management-consulting-services/.
NPI is a spend management consulting firm that protects companies from overspending in specific cost categories – information technology, telecommunication and transportation. Using a combination of market experts, proprietary methodologies and extensive data, NPI ensures that prices and terms are best-in-class. Reviewing more than 14,000 purchases annually, NPI provides objective oversight for billions of dollars of strategic spend for its clients. To learn more about how NPI can help your company start saving today, visit http://www.npifinancial.com or call 404-591-7500.