Why companies must manage overseas connectivity costs

As technology becomes increasingly vital for businesses, managing related costs grow in importance too.


One particular outlay is that of connectivity charges when travelling overseas, according to Rethink Technology Research.


The firm estimates that international business travellers are overspending by at least £855 million every year – and that’s only for costs in North America and Europe.


Business travellers from these regions made 78 million business trips in 2014 according to IPK International, who then use cellular roaming, pay-on-demand Wi-Fi and free-Wi-Fi services.


The cost of doing this is estimated at £1.42 billion although the research suggests providing access to an unlimited global Wi-Fi network could result in savings of around £855 million.


Not having a practical policy in place for staff that need internet access overseas could therefore be costing companies a lot more than it needs to.


The increasing reliance on technology means mobile data consumption will also likely rise, given that smart-phones, tablets and laptops are flying off the shelves.


Using log-ins across various locations brings with it some dangers of its own, as sensitive business information can be made available on unsecured networks.


Connectivity costs can vary wildly across the world and roaming charges will often push spending up – limiting usage is recommended for firms who are keen to bring down their operational costs.


Using free Wi-Fi rather than other connectivity methods can help but it is often slower, reducing the levels of productivity that possible for business travellers.


This was found to be one of the most expensive methods of connecting as the financial costs of lost productivity were greater than the costs of using internet services in the first place.


Firms need to give plenty of consideration to which approach to take, as it can be very easy to overspend and place pressure on company finances.


Undertaking business restructuring could help to free up funds for overseas business in instances where spending is too high.


It forms one of many options available to firms who are looking for new options and approaches in light of technological advancements.


By Phil Smith


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