Technology Expense Management is the systematic analysis and implementation of tracking and managing expenses efficiently, optimizing resource utilization and spending, and improving financial management processes.
Until the 1980s, Technology Expense Management meant managing your phone and communications lines. As the mobile and telecom industry grew, the solutions, devices, and services became increasingly complicated. Aside from the growth, the addition of newer cellular devices gave rise to subsets of the industry, such as Managed Mobility Services, which specifically refers to TEM in the cellular and wireless context. Knowing the available options and prices, and understanding how they serve specific needs, functions, or markets has become a service that the TEM industry provides.
The TEM industry constantly changes over time. While TEM once stood for Telecom Expense Management, with the rapid expansion of SaaS, cloud technology, and other IT expenses, the term has evolved to Telecom Expense Management to encompass all that is included. With the variety and complexity of tech solutions, companies struggle to keep track of spending, optimize costs, and properly allocate expenses.
The proliferation of remote work has caused enterprises of all sizes to engage in TEM solutions, pushing the industry to reach a critical mass. Now, all businesses must manage a variety of communication channels that blend wireless, voice, data, and IT. With more channels, there are also more devices and systems to manage. This exposes organizations to new sources of enterprise-wide vulnerability and challenges. The task of managing these systems has become increasingly specialized and time-consuming.
With $4 trillion in spending to be managed, and few dominant players, there are attractive opportunities for consolidation and growth in the TEM industry. In our whitepaper, we take a deep dive into the current state of the industry, the drivers of TEM growth, and the opportunity for mergers and acquisitions. Learn how the dependable need for TEM services, along with the reliable cash flow metrics driven by recurring services, has situated TEM as an attractive choice for private equity, venture capital, and broader strategic interest.
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Download our Technology Expense Management whitepaper for access to Falcon’s top-of-the-line industry overview and forecast for the future.
Consolidation is changing who competes in Technology Expense Management (TEM) and what buyers want to acquire. Today, AI makes routine invoice processing easier to replicate, placing pressure on providers whose main selling point is cost savings. As automated processing becomes standard, owners and investors must look beyond efficiency to assess a TEM business’s competitive strength.
Falcon Capital Partners estimates the combined global managed-services market at approximately $25-35 billion. TEM, Wireless Expense Management (WEM), IT Asset Management (ITAM), Managed Mobility Services (MMS) and IT Asset Disposition (ITAD) increasingly connect as parts of one technology life cycle. Providers are expanding beyond expense management to handle more of that life cycle, and acquirers are pursuing capabilities that extend what they can offer clients.
Built primarily on confidential interviews with industry executives and private-equity investors, The Technology Expense management Industry examines how consolidation and AI are reshaping the market. Our report illustrates why data quality remains a constraint on AI’s effectiveness and where Falcon expects further acquisition activity; it further explores what buyers scrutinize in diligence and how providers can build advantages that competitors cannot readily reproduce.
Falcon brings experience advising companies in the sector to the analysis, distinguishing interview findings from its own conclusions. Download the report for a closer look at the business competing in this market and factors shaping their long-term value.
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