Telecom Expense Management Market Size, Share, Industry, Forecast and outlook (2024-2031)

The Global Telecom Expense Management Market is Segmented By Solutions(Invoice Management, Sourcing Management, Business Management), By Services(Hosted service, Managed Service), By End-user(IT & Telecom, Consumer Goods & Retail Management, BFSI), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Telecom Expense Management Market Overview

The Global Telecom Expense Management Market is estimated to reach at a high CAGR during the forecast period 2023-2030. Telecom Expense Management (TEM) is a type of commercial service offered by numerous analytical companies where telecommunication services of an organization, such as voice, and data, among others, are analyzed and audited manually or utilizing software to reduce the respective organization's communication expenses without compromising efficiency. Telecom expense management offers a professional way to trace, understand and manage the overall telecom spending of a company, irrespective of its size. Though telecom expense management could manually be managed by a manager or an outside telecom expert in small companies, complicated software and services are often required for vast organizations. The complexity of communication devices and the absence of transparency in carrier charges are the major reasons why telecom expense management is gaining more and more popularity in modernity.

Telecom Expense Management Market Scope and Summary

Telecom Expense Management Market Dynamics and Trends

The global transition to an era of smartphones is expected to boost the telecom expense management market demand. Further, the growing demand for sustainable corporate solutions and economical deployment costs is expected to significantly drive the telecom expense management market during the forecast period.

The paradigm shift in communication technology

Since the world transitioned into an era of smart communication technologies, the complexity of evaluating telecom expenses also became knotty. Since a corporation has to handle data regarding millions of telecom communications, such as phone calls and video calls, among others, hiring a telecom expense management crew has become vital to minimize the telecom expenses of the corporation. Since increased smart communication boosts the demand for telecom expense management, the respective factor could be considered a major driver.

Cass Information Systems, Inc, a global expense management firm, new communication technologies such as 5G, AI-driven automation technologies, and cloud integration, among others, are expected to overtake human life and corporations in the coming years. The COVID-19 pandemic also acted as a catalyst for this rapid growth experienced in communication technology.

Nonetheless, as communications services are growing more complex day by day, the expenditure for such services rises rapidly. Therefore, close monitoring, audit, and control of these expenditures are mandatory to minimize the spending on communication services. Thus, the developments in communication technology and its integration into people’s lives have to be considered a significant driver for the telecom expense management market, capable of generating demands and sales in the respective market.

Instances of incompatibility between telecom expense management solutions provided by separate vendors restrict the growth of the global telecom expense management market

As in any field, different service providers in the telecom expense management market utilize different software and computational models to analyze and calculate telephone expenses. As the approach varies, discrepancies found in calculations and analysis also vary.

As long as each analysis remains independent, such small glitches or variations have no significant real-life impact. However, when different expense reports compiled by separate vendors, utilizing different expense management approaches, are put together to gain a clear picture of the telecom expenses, the diversity in approaches creates a massive problem as different types of inconsistencies add up, making the data incompatible and often irrelevant.

As a result, incompatibilities between expense reports made by different vendors could be considered a restraint that constricts the growth of the global telecom expense management market.

COVID-19 Impact on Telecom Expense Management Market

Even though the impact of COVID-19 on various markets across the globe was disastrous, the respective impact of COVID-19 on the global telecom expense management market is extremely constructive.

The primary reason behind the positive impact of the pandemic on the market is that the number of telephonic communications of various types spurts extensively as employees start working from home. Since most countries provide telephone as well as other paid communication subscriptions to their respective employees, the need to monitor these expenses and effectively regulate them has gained substantial importance.

Since most companies capable of operating during the pandemic are financially stable and generate an enormous amount of telecom communication, computational software and expense management services could be considered more feasible than internal telecom expense management since a service provider is more accurate and reliable in comparison.

Since the pandemic drastically improved the trend of employing telecom expense management services, the impact of the pandemic on the telecom expense management market could be considered constructive.

Telecom Expense Management Market Segmentation Analysis

The global Telecom Expense Management market is segmented into services, solutions, end-users, and regions.

A boom in small-scale businesses and entrepreneurs globally

Invoices refer to a bill that contains in-depth statements regarding expenditures associated with various services or goods provided by a particular company. Compiling invoices is considered an important and horrendous task, particularly for small-scale startups or entrepreneurs due to the shortage of resources.

Since the number of startups and entrepreneurs is rising rapidly in the modern era, proper invoice management could be considered the need for the day. As per statistics, around 580 million entrepreneurs exist across the world. Further, in the U.S., the rate of new entrepreneurs was 0.38%, indicating that an average of 380 out of every 100,000 adults became new entrepreneurs in a given month.

Since most telecom expense management services offer cheap and efficient invoice management, most small-scale businesses and entrepreneurs depend on such services, thereby extensively boosting the invoice management segment.

Telecom Expense Management Market Geographical Share

Growing population and mobile users along with revolutionized IT and telecom infrastructure tends to boost the market

The telecom expenses management market is expected to boom significantly in the Asia-Pacific region due to the regional specifications of the Asia-Pacific Region. First and foremost, the Asia-pacific region's population density is many folds compared to other areas. For instance, the population of the Asia-Pacific region is 4.6 million in comparison to 750 million and 580 million in Europe and North America, respectively.

Further, due to the cheaper cost of cellular devices in the region, the adoption rate of mobile devices in Asia-Pacific is exceptionally high. Finally, the revolutionary IT and telecommunication scenarios in most areas of Asia-Pacific also supplement the growth of the telecom expense management market in Asia-Pacific. For instance, in India, where 1 gigabyte of data is many folds cheaper than or the same in the U.S.

Telecom Expense Management Companies and Competitive Landscape

The telecom expense management market is highly consolidated, competitive, and filled with several local and global companies. Some of the major players in the market include Accenture, Econocom, Avotus Corporation, Sakon, Vodafone Group, CGI Inc, Dimension Data, RadiusPoint, Tangoe, and WidePoint Corporation, among several others.

The major companies in the market opt for numerous growth strategies such as acquisitions, product launches, and collaborations to expand their presence in the global telecom expense management market globally.

For instance, In July 2020, WidePoint Corporation, a U.S.-based company, announced its new telecom expense management contract with Virginia Alcoholic Beverage Control Authority (Virginia ABC). The contract period is for a year and holds four renewal periods of the same duration. The company intends to assist Virginia ABC in reducing its telecom expenses and thereby achieving a better market presence and reputation.

Accenture

Overview: Accenture is a professional services company founded in 1989. The company is headquartered in Dublin, Ireland, and offers extensive digital, cloud, and security services to clients in more than 120 countries. The company is registered on the New York Stock exchange and has the ticker NYSE: ACN. Accenture employs around 506,000 people and has a revenue of US$ 44300 million for the year 2020.

Product Portfolio: The Company has a service portfolio of telecom expense management, which is as follows:

Telecom Expense Management: The company utilizes comprehensive techniques to analyze and assess the telecom expenses of numerous multinational conglomerates and design solutions to improve the efficiency of communication within these organizations to optimize telecom costs and improvise the service levels of the company. Accenture offers long as well as short-term telecom expense management services that could induce a 10 to 20 deduction to a client’s telecom cost.

Key Development

• In November 2020, Accenture acquired Arca, a Spanish engineering company whose primary focus is business services and network operations. The company intends to integrate the multidisciplinary services offered by Arca with its SynOps platform to enhance its telecom expense management services.