Contact Information: Media Contact: Joe Basili Aberdeen Harte-Hanks (617) 854-5304 Joe.Basili@aberdeen.com
Gap Between Finance and IT -- an Obstacle to Effective Telecom Cost Management
Average Fortune 500 Company Is Not Managing $61 Million in Telecom Expenses
| Source: Aberdeen Group, a Harte-Hanks Company
BOSTON, MA -- (MARKET WIRE) -- April 4, 2007 -- In the new benchmark report, The CFO's View of
Telecom Cost Management, Aberdeen Group, a Harte-Hanks Company (NYSE : HHS ),
found that 75% of financial managers site lack of staff expertise as the
top challenge to effective management of telecom costs while only 33% of IT
managers see staffing expertise as an obstacle. This report highlights
areas where Best in Class performers are using technology to drive savings
and bridge the gap between finance and IT.
"Overall, 63% of survey respondents currently have a program to reduce
telecom costs, yet results vary wildly because most firms fail to properly
implement the components that are necessary for top performance," said Joe
Basili, Research Director at Aberdeen Group. The result of failing to
implement the right technology and bridging the divide is that enterprises
proactively manage only 67% of their telecom expenses.
The average company, with over $1 billion in revenue, spends approximately
1% of their revenue or $182 million on telecom expenses. This means, on
average, Fortune 500 Companies are not managing $61 million in expenses.
The survey found that 65% of enterprises do not have an accurate inventory
for service usage data. In addition, 49% of the respondents identified lack
of automation to manage network expenses as another obstacle to achieving
effective network cost management.
Best in Class enterprises are using technology and business process
outsourcing to bridge the gap between finance and IT. Top performers
automate invoice processing. They also establish portals for invoice
approval and bill payment. Best in Class reported a 67% reduction in
operational costs and a 62% reduction in late payment penalties after
implementing technology. They also establish robust reporting with accruals
and usage-based allocation chargeback by business unit, division and region
to drive accountability for expenses. These programs help to bridge the gap
between finance and IT by offering both groups the tools and data to manage
network costs. Best in Class enterprises also report 65% improved
procurement efficiency and 45% improved audit results.
Aberdeen Group is pleased to have AnchorPoint, MBG Expense Management, LLC,
PowerTrack, and TnT Partners, as sponsors for this report. Their
sponsorship enables Aberdeen to make the report available at no charge
through the following link:
http://www.aberdeen.com/link/sponsor.asp?cid=3935
About Aberdeen Group, a Harte-Hanks Company
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intelligence that delivers demonstrable results. Having benchmarked more
than 30,000 companies in the past two years, Aberdeen is uniquely
positioned to educate users to action: driving market awareness, creating
demand, enabling sales, and delivering meaningful return-on-investment
analysis. As the trusted advisor to the global technology markets,
corporations turn to Aberdeen™ for insights that drive decisions.
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Harte-Hanks brings to the market. For additional information, visit
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about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.