NPI Sees Increased Overspending on Enterprise Telecom as Mobility Proliferates in 2013
Spending pitfalls predate, compounded by mobility trends
Atlanta, GA (PRWEB) January 17, 2013
NPI, a leading spend management consulting firm, predicts increased overspending on enterprise wireless investments in the coming year. As the number of wireless devices in the enterprise grows, companies will suffer from reduced visibility and increasingly decentralized management of wireless costs.
NPI estimates that the average enterprise overpays 30 to 40 percent for wireless services. Despite the anticipated cost savings delivered by trends in wireless access and bring your own device (BYOD), many enterprises will still experience higher wireless costs in 2013.
According to NPI’s research, the most common cost increases and overspending pitfalls will be attributed to:
BYOD side effects. BYOD delivers many benefits, but not without cost. Many companies are losing valuable wireless carrier discounts as corporate device users move to individual-owned devices and plans. NPI recommends individual users sign up under the corporate rate plan to preserve discounts and credits. Additionally, NPI suggests companies fully understand the impact that early termination fees have on the migration of corporate users to individual plans.
- Navigating shared data plans. In 2012, the industry’s largest wireless carriers eliminated unlimited data plans. In 2013, many companies will be contracted under complex shared data plans for the first time. Without insight into how this move will impact spending, and how to mitigate those impacts, NPI advises wireless customers to expect significantly higher data costs in the coming year.
- Failure to secure fair market value rates and discounts. The complexity and opacity surrounding carrier pricing and discounts has led many enterprise customers down a path of unjustified overspending. Most companies don’t have the internal resources, deep understanding of wireless carrier plans, or street pricing insight to confirm whether or not they are paying carriers a fair price. NPI suggests companies benchmark wireless spending early in 2013 as the first step in eliminating overspending.
- Inability to align usage with carrier options. The proliferation of mobile devices in the enterprise has reduced companies’ visibility into wireless usage and asset inventory. This issue is compounded by the fact that few enterprises can keep up with the ever-growing number of carrier plans available to them. As a result, companies continue to pay for plans and devices that are underutilized and misaligned with their actual wireless usage patterns.
“The conditions have never been more ripe for overspending on wireless services and telecom technology. The cost management and spending pitfalls surround enterprises on all sides – from the very trends driving wireless usage to the intentionally complex plans and carrier agreements. Companies must have a plan in place to protect themselves from these risks,” said Jon Winsett, CEO, NPI.
For more information on NPI’s telecom advisory services for voice, data and mobility, please visit http://www.npifinancial.com/telecom-cost-reduction-expense-management/.
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.