Telecom companies sit squarely at the center of our ever-connected universe into which we are all wired (or wifi-ed). They power the daily interactions in our homes, businesses, and sprawling enterprises, and with every device that lights up, the landscape of their responsibility widens. Unsurprisingly, enhancing customer experience is top of the telecom leader’s to-do list. They are leaning on technology and digital transformation to bring the desired agility, but many find themselves struggling to keep up. This article explores the findings from an EdgeVerve-commissioned Forrester Consulting Survey of 630 business and IT executives to understand the roadblocks to digital transformation, key priority areas, and the power of a platform-centric approach.
A Forrester Consulting report commissioned by EdgeVerve found that despite pouring over $100 million into digital transformation efforts to enhance customer experience (CX), only 14% of telecom companies consider their efforts successful. So, what’s holding back the rest? Telco is also an industry that faces fierce competition. Products and services offered mostly mirror one another, and the main source of differentiation is customer experience. However, even a slight change in customer expectations can quickly escalate into an intense reality for these companies, given the sheer scale and volume of their customer base. Most leaders are well aware that embracing digital transformation and AI technologies is their golden ticket to boosting CX, operational efficiency, and cost-effectiveness. They have even pinpointed the most promising opportunities—enhancing security and privacy (87%), refining their operating models (75%), and streamlining query resolution(72%)–and critical levers to move the CX needle.
Knowing the path is half battle won, but executing on this knowledge is a whole different beast, with multi-layered complexities and formidable challenges that stymie even the most well-intentioned strategies.
Telcos launch into digital transformation with high expectations. But these aren’t just any straightforward projects; they’re complex, long-term efforts that intersect with the unpredictable twists of today’s market. Ironically, while these initiatives promise groundbreaking outcomes when they start out, many companies end up seeing a drop in productivity, efficiency, and customer satisfaction—a harsh wake-up call in a sector that thrives on differentiation and innovation.
Over half of the telecom companies surveyed are hitting internal roadblocks. A significant 58% battle with a corporate culture that resists digital changes, while 52% face the challenge of conflicting priorities from working in siloes. And about a big third of these firms are stuck at square one, not knowing where to begin their digital transformation.
The broader issue, however, is the disjointed digital strategies that fail to align technological capabilities with business needs. 35% of the leaders caught on to the fact that a digital experience (DX) framework– a unified platform– that could integrate data, networks, and workflows might just be the missing piece. However, few (10%) respondents believe they have solid strategies to connect systems and processes. This isn’t just a minor gap—it’s a significant barrier that stops these companies from succeeding in their technological investments.
While the ambition is clashing with the ground realities for telecom companies, the road to success is also quite clear.
Platform Power Play: Telecom leaders bet on Platform-based transformations
An impressive 82% of telecom leaders are advocating for a major overhaul: swapping out their outdated systems for cloud-native platforms shift to cloud-native platforms that flex with their tech needs. This perspective outstrips the industry-wide average of 75%, stressing just how important flexibility and adaptability are to telecom companies.
The big question hangs in the air: Which new systems should they adopt? With technology evolving at a breakneck pace, finding a solution that’s long-term, cost-effective, agile, and resilient isn’t straightforward. After all, we can’t just toss aside million-dollar investments every time a new tech trend pops up.
While the majority of leaders are convinced it’s time to move beyond their cumbersome legacy systems with a modern cloud strategy, 70% are betting on a platform-based approach as the best path forward. Though they’re not quite ready to go all-in on scaling AI due to concerns about tech maturity (39%) and potential security issues(38%), visionary telecom firms are eager to capitalize on the benefits of a connected ecosystem to boost customer satisfaction. They understand that enhancing system connectivity is a strategic move that can lead to better service and sharper operational efficiencies. Here’s what they’re zeroing in on over the next few months:
- 88% are stepping up with peer-to-peer networking and partner integration. This is about making the entire supply chain more transparent and responsive, helping them sense and meet customer demands in real-time.
- 86% are setting up built-in capabilities to make integration smoother. By ensuring systems and applications communicate with each other, they’re aiming to break down data siloes, enabling quicker and smarter decision-making.
- 85% are betting big on intelligent automation by mixing general AI, NLP, and RPA. They are collecting on the AI’s promise of minimizing human error, speeding up processes, and boosting reliability across the board.
- 81% are focusing on crafting an end-to-end delivery model. From discovery all the way to managed services, they’re building pathways that not only meet but anticipate customer needs, enhancing satisfaction and building loyalty.
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Consulting the Future
The strategy is set, and the challenges are marked; there’s a game plan ready to tackle them head-on. Yet, there’s a snag—36% of telecom firms are hitting a skills gap that goes beyond tech. They need people who can bridge tech with business smarts to unlock greater value. That’s why these firms are turning to a more consultative approach, aiming to drive transformation outcomes alongside their partners. A significant 70% of respondents are eyeing professional services or consulting to amp up the quality and effectiveness of their digital strategies. They’re also looking to platform-based vendors to clarify and lead their cloud adoption and migration strategies—66% believe this could define their path forward.
The telecom industry fuels everything from our smartphones to our broadband, all the way to the media we consume. They are at the heart of all things digital, yet ironically, they’re still finding their way around their own digital transformation. An industry known for connecting the world still needs to connect its internal pieces. By leaning into a platform-based approach, telecom companies are preparing to handle the next wave of changes effectively. All things considered, it’s shaping up to be a promising year with a positive outlook.
Disclaimer Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the respective institutions or funding agencies
