The cost of communications

In South Africa the cost of telecoms is traditionally higher than the global norm. In fact, it has often acted as a deterrent to foreign investment in the country, a huge loss especially to the call centre outsourcing industry. Add the current global economic downturn to these factors, and the call to contain the cost of telecoms becomes deafening, says Langenhoven, managing executive, Tellumat Telecoms.

Return on technology

Langenhoven says one of the surest ways to achieve communications savings is through the judicious use of technology. While some vendors market their technology as boosters of top- or bottom-line earnings, the real strength of communications technology is in its potential to save money.

“In fact, return on investment in technology purchases is measured almost solely in terms of cost - the costs incurred versus the costs saved by virtue of owning technology. If the cost incurred is less than the cost saved, and the quantum of the saving is high enough, you've made a sound purchase,” he says.

The case for efficiency

In this way, a very good case can still be made for communications technology that increases efficiencies and saves money - even or perhaps especially in troubled times.

“Here are two simple examples: rather than make a series of phone calls to track someone down, well-integrated communications technologies will bring the search down significantly and dramatically enhance efficiencies. And powerful modern collaboration tools easily beat being physically present at a meeting in another town for sheer value. It is almost unthinkable to burn money in a period that some commentators are already calling the Great Recession,” says Langenhoven.

What savings are and are not

“The true savings of converged communications and applications like unified communications are not so much the lower cost of voice minutes and bandwidth, as often claimed. Most of the savings lie in improved efficiencies,” he says. Businesses realise they can effectively do the same things and achieve the same outcomes more efficiently, more quickly or more cost-effectively. In some cases the re-engineering of business processes together with integrated voice technologies makes the critical difference to an organisation.

“If businesses integrate communications technology effectively and manage technologies like presence well, they optimise their external interaction and become more effective. Once they reach their customers, suppliers and partners without incurring great cost, they realise cost benefits and achieve an edge over less clear-thinking competitors. Some of these savings are measurable; others, like saved opportunity costs, less so,” he says.

Take care

It would serve companies well to remember that total cost of ownership of a technology goes far beyond its upfront price. Maintenance is an oft-forgotten invisible cost that sometimes blind-sides technology buyers. For instance, least-cost routing is often embraced without considering the high cost of maintaining it.

“In short, be sure to look at both sides of the deal - costs saved versus costs incurred. Does the right side pull the scale down?” asks Langenhoven.