Tech Mahindra, Scale at Speed

Communications Service Providers (CSPs) have consistently altered the way they do business in order to cater to the evolving demands of their customers. The road to delivering high-quality customer experience has compelled them to not just transform but reinvent their operating models. From being merely a service provider to embracing the networks of the future, migrating to the cloud, implementing fiber connectivity, and modernizing their IT landscape, telcos have skillfully managed to meet the needs of digital-native users. In the process, mounting Opex and dwindling returns have eroded their ROI.

To take the next leap and expand monetization avenues, they would need intelligence and automation across their entire ecosystem, which Artificial Intelligence (AI) can enable seamlessly. This is where Tech Mahindra steps in. Our Scale at Speed proposition does not just facilitate telcos to become AI-enabled; we transform them into being AI-native by simplifying, modernizing, and monetizing their business. Read on to uncover critical insights on this new phase of evolution.

CSPs need to leverage their unique position as the backbone of connectivity across digital ecosystems and within retail telecom to create more value by evolving their business and operating models. By shifting from a focus solely on connectivity to a more integrated approach, CSPs can capitalize on their extensive customer relationships and data insights to offer personalized digital services and solutions. Adopting agile and innovative operating models will enable them to quickly respond to market demands and technological advancements. Furthermore, CSPs must enhance operational efficiency and deliver superior customer experiences. This transformation will allow CSPs to become orchestrators of value within digital ecosystems, tapping into new revenue streams, driving customer loyalty, and solidifying their role as key enablers in the digital economy.

As a CSP IT services provider, our commitment lies in facilitating business outcomes for our customers which solidifies their role as key enablers in the digital economy. While these outcomes may vary in terms of metrics or success criteria for different CSPs, three overarching outcomes universally define the topmost challenges faced by every CSP CXO today. Firstly, there's a pressing need to simplify operations to enhance operational efficiency, which stands as the first outcome. Secondly, there's a demand for modernization to swiftly scale initiatives for change, including enabling customer experience to differentiate connectivity offerings and higher prices. Lastly, the third outcome involves the imperative to increase revenues by promptly responding to opportunities within digital ecosystems, particularly those that enable greater value creation beyond mere connectivity.

Let's examine the first outcome: simplification for operational efficiency and cost optimization. One significant area where CSPs allocate up to 70% of their operating budget is the network. To add context to this problem, we must consider the experience with 5G. The deployment of 5G has not only required substantial capital expenditure but has also increased network complexity, adding layers of operational challenges (denser cell sites, network slicing, dynamic resource management, integration with legacy systems, advanced technologies like Massive MIMO and beamforming, and ensuring security and regulatory compliance).

Critical to the success of operators as they strive to orchestrate value in digital ecosystems is their capability to effectively manage the heightened complexity in network operations. Already constituting a substantial component of operating costs, this increased complexity not only diminishes profitability for operators but also undermines their ability to deliver services with the desired level of experience, for which customers would be willing to pay a premium.

Moving on to the second objective, modernizing their business has been a prime focus area for CSPs for the last few years. Modernizing network and IT systems, business processes, and applications for CSPs would encompass several key elements to ensure successful and comprehensive modernization. There is a need to transform telcos, making them more agile, innovative, and customer-focused, ultimately to drive growth and new revenue streams.

This brings us to the third objective, monetization. CSPs must grow revenues either through the B2B2X model or their traditional retail model. In the B2B2X model, CSPs collaborate with businesses to deliver value-added services to end customers, leveraging partnerships, service enablement platforms, vertical-specific solutions, and flexible revenue-sharing models. In the traditional retail model, CSPs enhance consumer offerings by providing personalized services, attractive service bundles, premium offerings, excellent customer experiences, and innovative pricing models. Integration of AI, automation, and cloud-native architectures across both models is crucial for agility and rapid innovation. By focusing on these strategies, CSPs can effectively monetize their investments, drive revenue growth, and strengthen their role in the digital ecosystem.

In the long run, by embedding AI into their organizational culture and processes, the journey to becoming AI-native can become a reality. By focusing on scalable AI infrastructure, advanced analytics, and automation, telcos will be able streamline operations and provide superior customer experiences.

At Tech Mahindra, Our promise to help enterprises across industries transform at speed and bring agility, resilience, and efficiency to their businesses.