DTCC Picks IBM to Manage Telecom Spend

The Depository Trust & Clearing Corporation (DTCC) announced it is using IBM’s new Telecom Expense Management (TEM) solution to manage its multi-million dollar telecommunications spend.

Launched  in February 2008, IBM’s (News - Alert) Telecom Expense Management services provide clients with the solutions to manage telecommunication ordering, inventory and invoice acquisition and validation of services provided by their telecom vendors. These services help clients optimize their spending on mobile services by automating and standardizing business processes.

Important offerings in IBM’s service include consulting, assessments, historical audits and mobile savings analysis. The services are delivered through a Web-based portal for end-user mobile services and device ordering based on a company’s mobile policy and selected vendors and devices.

DTCC provides post-trade infrastructure for the U.S., as well as services for global markets, clearing and settling trades for equities, corporate and municipal bonds, U.S. government securities, mortgage-backed securities, and over the counter derivatives.

Considering the nature of services, it is vital for DTCC to keep its telecommunications and data communications services up and running at all times and maintain multiple service contracts with telecommunications providers.

Officials at DTCC say that IBM’s centralized telecom expense management solution helps them bring together diverse information and processes to streamline business processes and identify and obtain telecom cost savings.

Michael Obiedzinski, DTCC vice president, Network Services, added that IBM’s solution provides them a better grasp of their inventory and telecom spending. With this, DTCC could also identify significant savings opportunities and make more informed decisions about these expenses.

With the help of IBM’s Telecom Expense Management services, DTCC also expects to improve the management of order, inventory, bill payment, cost recovery and vendor management. Officials hope that all these factors will translate into an expected return on investment (ROI) to the company of more than 20 percent annually by improving process and business controls.

 “A company can gain greater understanding of its assets and capacity by better aligning its telecom investments,” said Laurence Guihard-Joly (News - Alert), vice president of Integrated Communications Services in IBM’s Global Technology Services.

Guihard-Joly added that IBM’s centralized, proactive telecom expense management solution is helping DTCC reduce its telecom costs and streamline corporate controls and audit compliance for a critical set of IT and business resources— both fixed and mobile communications resources.