MANASSAS, Va.--(BUSINESS WIRE)--Xigo, Dimension Data’s wholly owned telecommunications expense management (TEM) solutions company, today announced the results of a recently completed survey of telecommunication professionals in North America. The research, co-sponsored by CCMI, the industry’s leading provider of telecom rate, data solutions and information, found that 60% of enterprises are still in control of purchasing, managing and securing all end-user mobile devices for their employees, while also paying all monthly network service plan fees.
At the same time, the research also shows that enterprises have begun to embrace BYOD as a way to accommodate the needs of different employee user bases. A strong showing of respondents (22%) said they run a hybrid of corporate-liable and BYOD models, while 10% said they were full BYOD shops that not only allowed users to use their own devices at work, but expected employees to pay all their monthly network service charges in full themselves.
Of those who allow some type of a BYOD policy in their organizations, more than half of those programs (54%) have been in place for two years or longer.
“This research shows just how important it is for enterprises to understand how mobile communications are being used within their organization,” said Dave Spofford, CEO of Xigo. “Managers need to understand and plan for the permanent mobile workforce in a way that doesn’t discourage good working habits—but at the same time keeps the cost structure under control.”
Goals of BYOD Programs
In addition, the research looked into what enterprises felt the top goals of a BYOD program should be. The top three responses were that they saw BYOD as a way to keep employees happy (19%), while 17% saw it as a way to improve productivity and 15% focused on BYOD’s ability to lower their organization’s overall mobile spending.
Can BYOD Reduce Expenses?
An interesting finding related to this was that those enterprises that already allow some form of BYOD also responded that their mobile expenditures haven’t been reduced thus far as a result of BYOD. 67% of respondents using BYOD said their expenditures haven’t changed, while 24% actually saw an increase and 9% were able to successfully use BYOD to lower expenses.
Adoption of Tablets
According to the research, mobile phones still get the majority of enterprise attention, with a majority of enterprises more likely to purchase a mobile phone (15%) for employees than a tablet (5%). Enterprises are also more apt to subsidize mobile phone usage (50%) than tablet usage (30%). In terms of monthly service plans, enterprises are also more likely to pay all business-related charges for mobile phones (65%) than tablets (55%). That said, some 36% of enterprises do see tablets as an eventual replacement for laptops, which means we can expect these numbers to change.
“BYOD is more prevalent than ever before, but corporate concerns about security and support are the main barriers to actual adoption,” said George David, president of CCMI. He added, “That said, it is obvious that as more powerful and robust systems that address multiple Oss, hit the market that the tide will turn even further toward either a hybrid or fully BYOD strategy.”
Below are some additional findings from the recently completed research:
- Mobile Voice and Data Network Charges: 61% of respondents said their network service plan spend has stayed the same while just shy of a third (30%) say it has increased by more than 20%. The loss of volume discounts, opportunities for cost-effective pooling plans and the elimination of unlimited data plans are likely affecting these service charges. Cost-conscious enterprises still supplying devices clearly need tools for monitoring usage and expenses to prevent bill shock.
- Mobile Usage Policies: Enterprises have made significant progress with mobile policy and control. More than half (52%) have a written mobile usage policy in place that employees must agree to and sign. Two thirds indicated they are using tools from one or more mobile device and expense management suppliers to help enforce these policies and handle other functions related to managing usage and costs.
- Employee Subsidies. Most respondents say they reimburse their employees for business-related mobile phone calls and data access. The method for this is fairly evenly split between a flat monthly stipend (47%) and reimbursement via expense report (41%). Both approaches have pros and cons: the flat stipend is a fixed and budgetable cost, while the reimbursement only spends on what was actually used. It can be difficult for enterprises to determine how much of a fixed stipend to provide: too little, and it doesn’t satisfy users; too much, and the savings potential of BYOD drops.
- Amount of Subsidies: How much enterprises subsidize employees varies widely, but most fall between $26 and $75 per user per month. Slightly more subsidize in the $51 to $75 range (26%) than in the $26 to $50 range (22%). For context, 16% percent spend more than $1 million on mobile subsidies and 9% simply don’t know how much they spend.
- IT Support Costs: Most respondents (70%) say their support costs haven’t changed, while between a fourth and a third (28%) say those costs have increased by more than 20%. In a BYOD situation, with the user owning the device, the mobile network operator running the network and IT running the internal enterprise network, the potential for finger-pointing and wasted troubleshooting efforts runs high.
The full report, entitled “Mobility Temperature Check: Just How Hot Is BYOD?” is available to the public here: http://discover.xigo.com/BYOD-Survey-2012.html.
Xigo instantly reduces and controls mobile, fixed and global telecommunications costs for organizations of all sizes. The company provides the first solution that uploads wireless bills and automatically generates immediate cost and time-saving results – in minutes, not months. Xigo’s single, cloud-based platform accommodates company growth without adding complexity and satisfies the full range of enterprise communications expense management requirements. Xigo’s success is attributed to customer-centric innovations and industry firsts with more than a decade of expertise spanning wireless and wire line communications. For more information visit www.xigo.com, email firstname.lastname@example.org or follow us on twitter @XigoNow.
About Dimension Data
Founded in 1983, Dimension Data plc is an ICT services and solutions provider that uses its technology expertise, global service delivery capability and entrepreneurial spirit to accelerate the business ambitions of its clients. Dimension Data is a member of the NTT Group. www.dimensiondata.com.
CCMI is the industry’s leading provider of telecom rate and data solutions and information. We are dedicated to delivering relevant, highly specialized and strategically focused content. Find a complete product listing at http://www.ccmi.com/Products. CCMI publishes Voice Report, the leading independent source of telecom news, analysis and award-winning guidance on communications technology services and equipment for the enterprise. For analysis and guidance on the latest telecom happenings, visit http://www.TheVoiceReport.com, and sign up to receive email updates.