Transformation is nothing new to the telco industry. In fact, the last few years have brought significant changes to the space. Technology advancements, coupled with an increasing appetite for on-demand content, have fundamentally changed how telcos operate and reshaped their core business models, says Johan Bolin, CTO at Agile Content.
Internet improvements and the rise of cloud platforms have been central to this shift. From an end-user perspective, these technologies have altered the way we consume content, allowing us to stream it instantly while raising expectations around speed and quality.
For telcos, this has meant introducing new added services to meet demand, which requires technology stack updates and creates additional staffing needs. And of course, the pandemic accelerated and amplified these demands, putting huge pressure on telco operators during a period of global uncertainty.
That said, those same technology advancements have also eliminated key business barriers, such as distance and capacity constraints. This has opened up new opportunities for telcos to efficiently manage and meet changing consumer demands.
An operational shift
For many telcos, these landscape shifts have made it the perfect time to re-evaluate their operational strategy and explore partnerships with managed service providers (MSPs). While the managed services approach isn’t new in the telco industry, the recent evolution in the space makes it an increasingly viable and economically beneficial option for many operators. For example, the rise of cloud technologies and IP networks allows telcos to outsource specific sections of a tech stack, versus an entire network or service. This option offers significant value to providers as they can pick and choose the segments of their stack that would be more effectively managed by a specialist and keep the management of the other portions in-house.
Additionally, today’s managed services approach can help support growth in a way that wasn’t possible five to ten years ago. Previously, MSPs operated on-premise, meaning all technology lived in a customer’s facility and outside consultants managed it onsite. Today, with the availability of advanced cloud technologies and IP networks, entire services or networks can be managed remotely, from anywhere in the world. This has significant implications for scalability. Because MSPs can operate many network components remotely via the cloud, they reduce reliance on on-premise operations and make it much easier and faster as well as more cost-effective for telcos to scale their operations up or down as needed.
Taking a managed services approach also helps from a recruitment and personnel standpoint. Finding and maintaining the right talent can be a costly and time-consuming process, and even upon hire it’s difficult to know for sure that the employee is properly equipped for the job. According to Korn Ferry’s Future of Work report, the global technology, media and telecommunications sector will experience a deficit of 4.3 million skilled workers by 2030, showcasing the recruitment challenge facing telcos.
Working with an established MSP eliminates that challenge, providing the peace of mind that operations are being handled by professionals with a proven track record and expertise in the space. Given the remote nature of operations today, MSPs also have the ability to recruit from a wider pool, which helps ensure they are utilising top talent.
Optimisation at the core
In addition to changing demand patterns, another result of the evolving telco landscape is that most TV operators have moved from a model focused on growth to one centered on driving operational excellence. This means they are putting an increased focus on optimising costs and shifting from technical feature differentiation to operational alternatives that are cheaper and more effective.
This is another key reason why working with an MSP makes good business sense. By outsourcing all or part of their technology stacks, telcos can vastly reduce their capital investments and operational expenses all while having the peace of mind that their operations are being handled by specialists with years of experience. Finally, in addition to reducing operational overhead costs, giving an experienced MSP the freedom to develop the platform also helps increase the speed of innovation and frees up employees to focus on other key aspects of the business.
For telcos, thriving in today’s environment means being agile enough to embrace change and meet new consumer demands. For many, partnering with an MSP has become an increasingly effective approach. Working with an MSP offers significant benefits, including improved scalability, lower overhead costs, operational optimisation, reduced recruitment challenges and a more efficient use of resources and personnel.
The rise of key technologies has made the telco space increasingly dynamic and competitive in recent years. But, with the right partners and business model, providers can capitalise on new opportunities and continue to drive success in the future.
The author is Johan Bolin, CTO at Agile Content.
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