& cplSiteName &

B/OSS Transformation Defies IT Budget Cuts

Denise Culver
Heavy Lifting Analyst Notes
Denise Culver, Online Research Director
12/7/2017
50%
50%

During a time in which telco IT departments are facing increased pressure to reduce transformation budgets, many service providers in Heavy Reading's Thought Leadership Council (TLC) say the exception to those reductions is in business/operations support system (B/OSS) transformation.

IT transformation typically accounts for about 10% of a telco's total capex. But as telcos continue to place increased focus on adding network infrastructure to cope with data traffic growth, IT increasingly has turned to transformation budgets for the necessary funds to do so.

Fifteen service providers with expertise in business support system and operations support system transformation participated in a Q&A forum, the results of which are found in the most recent report based on the Thought Leadership Council (TLC): B/OSS Transformation Focus Group: Hefty Budget Increases Expected Through 2023.

Despite the belt-tightening experienced overall in telco transformation, 60% of providers on the Council say their overall budgets for B/OSS transformation will increase by more than 5% from 2019-2023.

In 2018 alone, an overwhelming majority of service providers in our forum say they will dedicate more than 15% of their IT budget to B/OSS transformation. About half of TLC participants say the most important area of investment for their B/OSS transformation dollars is in business intelligence and analytics, and 20% identify the most important investment area as customer experience management (CEM) platforms.

The report provides additional insight into why these CSPs will continue investing in B/OSS transformation despite pressure to reduce overall transformation budgets. The overwhelming majority of TLC participants in the report say the main driver for B/OSS transformation is to find new customers, product and service offerings. More than 30% of participants say the primary driver is to meet the challenge of new competitors.

Beyond revenue and profit motives, the top goals that CSPs in the Council want to achieve through B/OSS transformation include the ability to increase operational efficiency, as well as improve service agility and/or time to market.

TLC is a Heavy Reading research initiative that consists of panels of CSP experts focused on key areas of telecom development, including B/OSS Transformation, SD-WAN, Internet of Things (IoT), Automation, 5G and Emerging Technologies & Services (Project 2025). Members participate in Q&A forums several times a year, and all information disclosed by Council members remains anonymous.

— Denise Culver, Director of Online Research, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
The use of artificial intelligence by telcos is currently limited, but the Acumos AI Project looks set to make machine learning applications more easily created and readily available.
Cable is moving in on the wireless market, with many exciting opportunities opening up across the board, including in WiFi, mobile virtual network operator (MVNO) and 5G.
On July 27, Nick Read will become Vodafone Group CEO designate before assuming the role of Group CEO on October 1. What can we expect from the operator's current CFO once he's in the hot seat?
More than half the communications services providers surveyed for this report expect to have 5G backhaul ready by 2020, even though they still do not know which vendors they plan to use for this step.
Mobile operators may find that all their investments in VoLTE and RCS are for naught as OTT providers win and they are left monetizing the data pipe.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Telecom Jargonosaurus Part 1: Repeat Offenders
Iain Morris, News Editor, 7/13/2018
Broadcom Buys CA – Huh?
Mitch Wagner, Executive Editor, Light Reading, 7/11/2018
Verizon Taps Malady as Acting CTO
Dan Jones, Mobile Editor, 7/12/2018
FCC's Rosenworcel: US 'Falling Behind' on 5G
Iain Morris, News Editor, 7/13/2018
Netflix Is Growing, but Don't Ask by How Much
Phil Harvey, US News Editor, 7/16/2018
Animals with Phones
Casual Tuesday Takes On New Meaning Click Here
When you forget your pants.
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed