Posts Tagged ‘Reduced Capital Expenditure’

Cost saving idea for “overbloated” telecommunications costs

September 3, 2010

In North America, Enterprises spend upwards of 6% of an enterprise’s gross revenues on telecommunications expenses.  This is a sizable chunk of money especially when you consider that is anywhere on average between 15%-30% of the entire IT budget.

Many enterprises have begun to get on board to the Voice Over IP (VOIP) bandwagon along with Unified Communications as a way to reduce their telecommunications cost.

With globalization in full swing, multinational companies now have offices all around the world. Consequently, a significant amount of calling traffic exists between these offices as employees collaborate on projects together. This leads to high long distance call charges. Even though International calling rates have significantly come down in the recent years, they are still a significant source of expenses for multinational companies. With VOIP and least cost routing, these costs are significantly reduced. In addition, VOIP opens up new avenues for conferencing and collaboration.

1. Reduced Capital Expenditure (CapEx)

Moving to a single platform that handles both voice and data traffic reduces capital expenditure by a huge margin, both initially and for the long-term. VOIP allows the enterprise to consolidate separate voice and data infrastructures into a single converged network. In addition, by implementing IP-based services, branch offices can preserve their investments in legacy infrastructure and extend its useful life, while leveraging the IP-based services hosted at headquarters.

2. Lower Operational Expenditures (OpEx)

VOIP allows one converged network to transport data and voice services simultaneously. This convergence reduces the overhead required to operate and maintain two disparate systems. Moves, adds, and changes (MACs) are much easier and cheaper on an IP-based PBX and telephony platform. With legacy platforms, difficult configuration changes can be cumbersome and costly third-party consulting often comes into picture.

3. Enhanced Employee Productivity

Initially, enterprises began adopting VoIP technology applications as a means of reducing long distance bills. However, these technologies have evolved into a platform that enables such rich featured applications as Unified Communications, conferencing, and worker collaboration. With teams working across the globe, VOIP enables multimedia conferencing, which can be easily setup and operated independently from the service provider. In addition, VOIP presence features allow users to be notified when the other party is online, ready and available for interaction. It also supports such file sharing and business applications as Microsoft Office Suite on a single platform, enabling still higher levels of collaboration.

4. Reduced mobile phone bills

With to remote voice connectivity via VOIP, road warriors no longer need to mount their monthly expenses by using their mobile phones when they are globetrotting. With Internet access universally available, road warriors can use VOIP to be connected to all their phone numbers remotely. Furthermore, by using presence, VOIP allows a single number to be registered to a variety of devices, making staff members available to their customers even when they are traveling.

Overall VOIP solutions can save an enterprise anywhere between 40-70% on their office to office telecommunications costs. Obviously existing infrastructure and communications lines have to be taken into consideration when developing a successful VOIP solution.

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