135 years ago, Graham Bell changed the course of the human history with his invention of the telephone, giving birth to the telecommunications industry. A simple phone call is still one of the biggest sources of revenue for the industry, but thanks to the advances in the network technologies, the Telecom industry is no longer just about the voice. It has successfully moved on to integrating images, texts and multimedia over various channels and continues to be the epicenter of innovation and disruption for the companies in this field.
To drive innovation, stay relevant in the industry, and meet overreaching consumer expectations, companies need to stay in touch with the latest trends so they can maintain their competitive advantage in the market and stay ahead of the game. So, what does the future of the telecommunications industry look like in 2018? Well, new research by HfS Research has shown that the growth rate for the global telecommunications industry is stagnating, at only 3.8% growth from 2014-17, as revenue from the core communications services is declining. Also, the last decade has seen a lot of IT outsourcing deals which reflect the Telecom industry's focus on legacy modernization of networks, with an emphasis on digital transformation. In this context, businesses need to revitalize themselves by harnessing next generation digital technologies that augment their operational model, while knowing how and when to monetize it. Enterprises need to change the focus and nature of their engagement with leaders, advisors and service providers to be more agile and collaborative in trying to achieve shared outcomes.
Although the telecom industry’s growth …has declined, all hope is not lost yet. Recent data from the HfS Research Report has shown that there is still potential in the Telecom IT and Business Process Service (BP) sector, which is projected to experience hyper growth by achieving a size of $39B in 2022 from $33B in 2017. Organisations should pay heed to this trend because it entails enabling new technologic solutions in the realm of AI, Analytics, Intelligent Automation and IoT to better serve customers. These change agents will not only help companies leverage the growth in the IT telecom industry, but chatbots, and machine learning for data analysis by leveraging also set them apart from the competition. Researchers suggest the use of network optimization, AI, automating service desk operations, payroll and HR functions, and order fall-out and provisioning management by use of RPA and enabling the ability to offer services in other sectors, such as smart homes, smart cities and connected cars by using IoT. These are examples of use cases that companies can use to stay relevant in the industry and drive innovation.
Now, all this talk about AI, Robotics and Internet of Things sounds fancy, however, it also means that companies would have to make significant monetary investments in these fields to achieve the desired business outcomes. So, why should companies invest in such opportunities? HfS Research has shown that traditionally, telecommunications companies have considered profit growth and driving down operational costs as core business outcomes for their enterprises. Experts suggest that this is a short-term approach that will help achieve profits, but companies will be hard pressed in trying to roll out new products and services for their consumers in the long-term. If the companies want to stay in the game, they must know the rules of the game. The rules of the game for the Telecom industry are changing and they need to adapt accordingly. Innovation is the currency that companies cannot afford to lose while eyeing the short-term goal of driving down costs. Companies need to opt for a long-term growth strategy that focuses on strategic alliances and leveraging the new technologies to digitally transform customer experience (CX). So, invest now and save yourself the pain later.
To sum up, future for the Telecom industry will focus on 5 areas of investment opportunities through 2022:
- Customer Experience (CX)
- New Services (Innovation)
- Legacy Modernization
- Digital transformation
- Business Operations
Staying aware of these trends will be essential for the Telecom companies to beat the competition, leverage digital transformative opportunities and drive innovation in the market.
The message is clear. Darwin said it hundreds of years ago and the insight is still relevant today: Survival of the Fittest. If companies stay stagnant and do not evolve with the changes in the environment, the fittest of the pack will knock these organizations out of the innovation chain. So, invest in new, digital technologies such as RPA, AI and IoT, think of and plan for the long-term growth strategy by partnering with service providers and embrace new and disruptive business models to power innovations that enhance consumer experience (CX).
CSS CORP was included in the ‘Winner’s Circle’ by HfS for Excellence in Telecommunications Operations 2018. Want to learn why CSS Corp is positioned in the Winner’s Circle and find out more how your company too can stay ahead of the competition? Click here to get exclusive access to the HfS report which includes insider secrets to the future of the Telecommunications sector and become a winner!