Back to Blog
Managed IT5 min read

Technology Expense Management (TEM) – Spend Optimization Solutions

Today's IT environments are more complex — and more costly — than ever. Technology Expense Management (TEM) gives organizations the visibility they need to eliminate waste, optimize spending, and reclaim budget for what matters most.

If there is anything you know it's this: today's organizations have complicated IT infrastructures. They didn't plan it that way. But recent trends like Work From Home and Bring Your Own Device have forced businesses to create a patchwork of tech upgrades. In the resulting mess, understanding costs can feel practically impossible. That's where TEM comes in.

Technology Expense Management (TEM) solutions are designed to give organizations granular insights into their IT service inventory. For the organization, this visibility allows for cost savings and optimization. TEM is like an X-ray machine, giving you a clear view of the tech spend.

Why TEM, Why Now? The global market for TEM and expense management resources is expected to reach $7.9 billion by 2030. Why are we seeing such rapid growth? Because organizations are struggling to understand where their IT budget is going — and they want to optimize their spending.

Take, for example, cloud computing. Businesses are sending workloads to a mix of private and public cloud environments — often without a Financial Operations (FinOps) team tracking expenses or considering optimization strategies. This leads to waste and operational inefficiencies. We're also witnessing a general increase in mobile communications since the COVID-19 pandemic. In a world where employees complete much of their work on personal devices, often with the assistance of a range of AI solutions, organizations are seeing their tech stacks grow more costly and more complex. Without a comprehensive telecom audit, they may never gain genuine visibility into their IT spending.

Benefits of TEM Solutions. Technology Expense Management can have a transformative effect on an organization's IT budget and infrastructure. Benefits include: eliminating complexity by organizing expenses — which reduces the number of nasty surprises when technology bills arrive; pinpointing the exact factors contributing to rising technology costs; and identifying opportunities for ongoing savings. The end goal: an optimized tech stack that does a better job of helping the organization meet its core objectives.

TEM Subcategories and Related Solutions. TEM is part of a wider set of solutions with the same general purpose — to help organizations optimize the value of their tech spend. IT Expense Management (ITEM) is an umbrella term for approaches and solutions designed to help organizations optimize the value of their tech spending — essentially a synonym for TEM. Cloud Expense Management (CEM) solutions specifically focus on cloud spending, a critical need as businesses leverage a mix of AWS, Azure, and Google Cloud Platform and their cloud-related costs soar. FinOps (Financial Operations) is a strategic framework created by the FinOps Foundation to help companies control cloud costs and make more efficient use of their cloud services. Mobility Expense Management (MEM) solutions aim to control and optimize an organization's telecom-related spending, often going hand-in-hand with a larger Mobile Device Management (MDM) strategy. Telecom Expense Management focuses specifically on telecom-related expenses.

Case Study: $150,000 in Monthly Savings After a Single Audit. A Canadian oil and gas producer facing market volatility set a simple objective: address rising telecom expenses. But a hodgepodge of cost allocations and general ledger cost codes made a thorough assessment difficult. They needed financial visibility. By investing in a TEM solution — beginning with a comprehensive telecom audit — they uncovered wasteful spending such as smartphones needlessly configured for international roaming, ex-employees whose devices remained on the organization's data plan, ongoing payments for discontinued legacy services, and suboptimal bandwidth allocated for switches, routers, and firewalls. The result: $150,000 in monthly savings — totaling $1.8 million after a single year.

Lesson Learned: In-Cycle Optimization Is Essential. To avoid wasteful spending, organizations should regularly assess and right-size their connectivity plans. But IT professionals are often too busy using the tools to step back and assess their cost-effectiveness. A third-party telecom audit should be considered.

Starting the TEM Conversation. Ready to optimize your tech spend? Key discovery questions to ask include: When was the last time you reviewed your technology expenses? Could I review your current bills? Have you noticed your cloud application expenses are increasing? Has your company acquired or merged with any new business? Is your company looking to divest any part of its business? Do you have a good grasp on contract end dates and total IT spend?

For more information on TEM or to schedule an initial TEM consultation, email [email protected] or call (678) 662-5700.

Share
TT

TakTik Technologies

North Fulton County, Georgia · Managed IT & Cybersecurity

Ready to put this into practice?

Talk to the TakTik team about how these ideas apply to your specific business environment.

Get in Touch