The answer to when you should monitor your telecom expenses is always. The answer to the second part of the question, when should you change services, could depend on a number of factors. You should start investigating the possibility of a change before the end of your contract period. Consider how important that telecom expense management is to your company, the more that you rely on technology, the more important and the more expensive that it becomes. For some companies, the telecom costs can be more than a quarter of their revenue but is a vital cog in their industry. Think of where a financial institution, medical research lab or tech company would be without their communications capability.

Telecom expense management (TEM) and its importance becomes even more clear when you consider that for the average company, could be spending around 26% more on fulfilling this need than they really need to. For instance, they could be billed for services that they do not have, have never used or may pay for the same service twice. Without watching the bill for each cost and considering whether it is valid and necessary, a company that is spending $15 million on telecom services is wasting $3.9 million dollars. Simply by monitoring the costs and the charges that you are paying, you are potentially saving your company nearly four million dollars. Every company is struggling to tighten their belt and get a grip on some of their runaway costs, how simple to review a bill and make sure that all of the charges are as they should be and that there are no errors on this bill. 

TEM should also be done on a regular basis so that the services that are never being used can be dropped as quickly as possible to prevent further charges being accrued. In addition, there may be some services that are used more frequently- another factor that should be addressed when the telecom contract is reviewed.

For the second part of the question, we consider this fact: most companies allow for an examination of rates and contracts six months before the current contract is set to expire. This is the time to address needs and concerns not only with the current provider but with other companies as well. Through vigilant monitoring, you can tell what services are being used most frequently and which are not used at all. You can see what you are currently paying for these services. You know whether the service with this provider has been top notch or a little sup par. You know whether you are a satisfied customer or not.

Before signing another contract, make sure that you investigate other companies- comparing rates, service and contract terms. In addition to the rates that you are quoted, make sure that you negotiate the cost of the switchover from one company to the other. If you do plan to go from one to another, make sure that there will be a smooth transition period.