Press Release

Telecom Expense Management (TEM) Survey Reveals Centralized Management Key to Greater Satisfaction

New York, NY, April 9, 2008 - According to the 2008 Telecom Expense Management (TEM) Benchmark Survey, conducted by Edge Research and supported by MBG Expense Management, overall satisfaction with TEM is low but companies with centralized telecommunications management report significantly greater levels of satisfaction.  Companies interested in comparing their TEM performance to the benchmark can do so at www.mbg-inc.com.

Many companies have yet to realize the true benefits associated with TEM solutions, with only 59% of companies indicating that they know the total cost of their network services, a key indicator of a successful TEM initiative.  Among those satisfied with their organization's TEM solution, 73% know the total cost of network services.  Awareness of the cost of network services drops to just 38% among those that are dissatisfied with their organization's TEM solution.
  
Achieving centralized management of telecom spend is a key prerequisite that enables companies to know their total network costs and therefore adopt and follow industry best practices.  This is supported by the fact that, among companies that know their total network costs, 81% indicated that they centrally manage telecom spend.  Among those satisfied with their organization's TEM solution, 88% centrally manage telecom spend.  This high satisfaction rate can be attributed to the fact that the vast majority of these companies have indicated that they have attained TEM savings of greater than $1,000,000.

To achieve centralization, the data also suggests a strong correlation with electronic invoice data adoption.  Among those companies that receive the majority of their bills electronically, 83% are able to centralize telecom spend and are more satisfied with their overall TEM solution.

“Clearly the findings from this survey confirm the importance of selecting a solution that can process detailed electronic data to centralize the management of telecom spend, which generates significant savings,” says Andrew Attalienti, Director of Marketing for MBG Expense Management.

“Most of the companies surveyed assert that getting a centralized view of their telecom spend was a core reason for moving to a TEM solution,” says Jon Kulok, president of Edge Research, who conducted the research study.  “The reality though is that, relative to other TEM initiatives, organizations appear less satisfied with centralization than with other elements of their solution.  As a result, there is an opportunity for a TEM provider to become a leader in the space if they can deliver on customer expectations with respect to centralization.”

“For this very reason MBG is offering a free trial to allow organizations the ability to view their own billing data in a centralized platform before making a purchasing decision.  This is to ensure that companies can gain a comfort level and experience the power of processing detailed electronic data to improve management of telecom,” adds Attalienti.

Other key findings from the survey with regard to satisfaction levels are:

• Only 12% of organizations are receiving 81% to 100% of their bills electronically.  Just over half (54%) of organizations are satisfied with the processing of their electronic vendor feeds.

• Six in 10 (61%) are leveraging business intelligence in their analysis of telecommunications data, and among them, roughly half (52%) are satisfied with their level of business intelligence.  A little over half (51%) of the organizations surveyed are satisfied with the level of reporting they receive.

• Fifty-four percent (54%) manage the ordering and provisioning of all assets through a single/central portal and, among them, just over half (53%) are satisfied with their provisioning solution.
  
  

About the Survey
The survey was supported by MBG Expense Management and developed by Edge Research, an independent market research firm based in Arlington, VA.  Edge Research conducted the online survey from November 6, 2007 to January 2, 2008, where respondents had the opportunity to opt in to receive a benchmark report to see how their responses compared to the aggregate.  To qualify, all respondents had to answer a series of questions that indicated they were responsible for managing telecom for an organization that spends at least $5 million annually on telecom.  The findings for this survey are based on 411 responses with a margin of error of +/- 4.5%.

Companies that are interested in comparing their TEM effectiveness to others in this survey can take the survey and receive a benchmark report at www.mbg-inc.com.  If you would like to receive a high-level summary of the benchmark report, please contact (212) 822-4438 or info@mbg-inc.com.

About Edge Research
Edge Research is a custom market research provider that works with a wide variety of organizations in the public and private sectors to provide results-oriented information, data, and recommendations to help them meet their strategic objectives.

Edge’s expertise includes the full range of primary research methodologies to engage target audiences, from traditional focus groups, in-depth interviews, and usability tests to telephone and online surveys. Edge evaluates every available research tool and adapts the most appropriate methodology to the client’s data and research needs.  For more information: www.edgeresearch.com.

About MBG Expense Management
MBG Expense Management provides leading outsourced and on-demand telecom and IT expense management solutions to organizations seeking to enhance control over their telecom and IT costs.  MBG Expense Management’s solutions are focused on giving organizations the ability to manage, monitor, and order all of their telecommunications and IT services through a secure, centralized hub. MBG's core solutions include provisioning, inventory, invoice processing, and IT chargeback, along with extensive professional services that include audit, consulting, and contract negotiations for both landline and wireless communications services.  Headquartered in New York, MBG Expense Management serves some of the largest multinational corporations as well as leading mid-market companies.

Click here to take the Telecom Expense Management Survey >>