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The Pros and Cons of Telecommunications Outsourcing 

In the modern business world, telecommunications outsourcing is an increasingly popular strategy for corporations looking to cut costs, streamline their operations, grow their business, improve their services and increase efficiency. It allows your company to outsource your voice, data and video communications services to a business process outsourcing (BPO) provider. In fact, a report by Market Research Future stated that this year, 2023, the global telecom outsourcing market would increase to 4.3% CAGR.

By outsourcing certain aspects of telecommunications, your company can take advantage of the technological advancements and specialised services you may need more resources or expertise to provide in-house. Moreover, hiring in-house is costly and requires a lot of resources, from training, salaries, and workspace to IT infrastructure and maintenance.

Outsourcing telecommunications offers many advantages but has certain drawbacks and risks. Thus, your business needs to be aware of both the advantages and disadvantages before deciding whether or not telecommunications outsourcing is right for you. 

In this blog post, we will explore the key pros and cons to help you make an informed choice about whether telecommunications outsourcing suits your business needs. But before directly proceeding to that, we will also discuss necessary details about telecommunications outsourcing. 

Keep on reading! 

What is Telecommunications Outsourcing?

Telecommunications outsourcing involves contracting out the management and operation of a company’s telecommunications systems to an outside service provider or BPO company to perform certain telecommunication tasks. These tasks could be anything from telecom researchers, network designers and managers telemarketers to technical support specialists. The main reasons for doing this are to save money and to free up internal resources that corporations can use better elsewhere.

Why is the telecommunications sector suited to outsourcing?

  • The industry of telecommunication services is heavily dependent on the reliable transmission of information over different distances. Substantially, a communications channel sends data from one device to another. The type of technology and software necessary to perform this and keep up with the demand for faster ‘sending receiving’ speeds can be costly. Corporations invest millions into their research and development (R&D) teams to ensure their customer offering is the best in the market.
  • Your company could save up to 70% on recruitment spending alone with offshoring to the Philippines due to the lower living costs.
  • The global telecom spending prediction needs to consider the cost of recruiting staff to keep up with market growth and the overheads that come with additional people. Outsourcing can be a solution for businesses that want to lower overheads to concentrate on upgrades and develop technology strategies to initiate growth.
  • On top of this, telecommunications staff require specific qualifications and communication skills. Within Manila’s capital city alone, more universities specialise in telecommunications, making competent graduates in the past few years. 
  • Telecommunications combines two sectors into one: communications and technology. These two components are what cloud-based software and systems are all about. Since a BPO outsourcing company heavily relies on cloud-based technology to connect offshore and onshore teams, telecommunications fits perfectly with offshoring.

Common Roles and Tasks You Can Outsource in the Telecommunications Industry

  • Telemarketer
  • Technical Support Specialist
  • Technical Support Engineer
  • IT Support Specialist
  • Sales Representative
  • Network Engineer
  • Telecommunications Specialist
  • Technical Project Manager
  • Data Analyst
  • Customer support

The Most Frequent Telecommunications Services That Businesses Outsource

  • Network design and implementation
  • Maintenance and support
  • Monitoring and reporting
  • Billing and invoicing
  • Lead generation
  • Customer support
  • After-Hours Support
  • After-Sales Support
  • Billing Inquiries
  • Call Overflow
  • Cancellation Requests
  • Coverage Area Questions
  • Customer Database Management
  • Device-Related Troubleshooting
  • Disaster Recovery Support
  • Forms Processing
  • Lost Phone Resolution
  • Mobile and Wireless Support
  • Number Porting Requests
  • Order Validation – Industrial/Commercial/Individual
  • Pre-Paid/Post-Paid Ordering and Activation
  • Product Data Management
  • Query Resolution
  • Server Support
  • Service Inquiries
  • Subscription Services
  • Warranty Support
  • Welcome Calls

Pros of Telecommunications Outsourcing

Cost savings

The cost of running an in-house telecommunications department can be expensive. However, when you outsource your telecommunications needs, you can save money on the overall costs of running your business. This is because outsourcing companies can often provide discounts on bulk orders and also offer other cost-saving measures.

Robust security & compliance

Due to several recent high-profile cyber-attacks, security is a top concern for telecommunication companies. Telco companies manage large swathes of sensitive consumer information across critical communication infrastructure, positioning them as a prime target for security threats. This vulnerability means it’s more crucial than ever to fortify your telecommunication customer support with the strictest international security standards. 

A BPO service provider takes information security seriously. They adhere to strict compliance protocols such as SOC 1 & 2 attestations and global PCI-DSS certification to ensure your client’s information is always protected. By entrusting your telecommunications requirements to a reputable outsourcing company, you can be sure that your data and information will be safe and secure. This increased security can give you peace of mind, knowing that there are trusted people protecting your business against potential threats.

State-of-the-art technology and innovation

Forward-thinking companies are looking at new and best-in-class technologies to drive digital transformation. A BPO provider’s specialist automation and intelligence teams can transform BPO outsourcing for telecommunication companies with secure customer self-service options streamlining repetitive processes using Robotic Process Automation (RPA) and voice biometrics. Automation can help reduce human error, improve efficiencies, and increase productivity, allowing you to reallocate resources to higher-value telco customer support functions. Boosting service delivery is another critical driver for telecommunication providers looking to exceed customer expectations. 

Excellent capability and performance

Telecommunication businesses need to have the ability to scale rapidly with competency and speed to meet evolving consumer demands and industry requirements effectively. BPO companies have extensive experience successfully deploying high-performing outsourced teams for privately and publicly listed telecom companies—via traditional operations from world-class delivery centres or a Work from Home (WFH) setup.

No matter where you deploy your operations, an external provider offers the best processes, tools and staff to make it easier to handle your team anytime, anywhere. This allows you to monitor real-time performance and reallocate resources depending on customer influx. And with committed project management and client relationship management teams, a BPO company can champion your brand and communicate with you every step to ensure consistent alignment with your goals and streamlined operations, serving as a true extension of your company.

Increased flexibility

Outsourcing allows businesses to scale up or down their telecommunications services as needed. This can be helpful for companies that experience seasonal fluctuations in demand or are growing and need to increase their capacity quickly. Additionally, they often offer flexible contracts that you can adapt to suit the changing needs of your business. This flexibility can be vital in ensuring that your telecommunications infrastructure can keep pace with your business’s growth.

Enhanced efficiency

By outsourcing your telecommunications requirements, you can free up valuable time and resources that your business can better use elsewhere. Overall, this increased efficiency can lead to improved overall productivity and performance.

Cons of Telecommunications Outsourcing

Difficult to find a reputable and reliable provider

Many providers are out there, but not all are created equal. It’s essential to do your research and select a provider with a good reputation and is known for providing quality services.

Hidden costs

Sometimes, the costs of telecommunications outsourcing can be higher than anticipated due to hidden fees or charges for features that were initially not included in the contract. This can lead to frustration on the organisation’s part and could cause financial difficulties.

Dependence on a single vendor

When an organisation outsources its telecommunications needs to a single vendor, it relies heavily on that vendor to provide services. This can lead to problems if the vendor experiences technical difficulties or goes out of business.

Lack of control

When an organisation outsources its telecommunications needs, it cedes some degree of control over its communications infrastructure to the outsourcing provider. This can be problematic if the provider is not responsive to the organisation’s needs or does not have the same high standards for quality and reliability as the organisation itself.

When should you consider telecommunications outsourcing?

  • When in-house costs are too high, and you want to reduce expenses
  • When you don’t have the internal resources to manage your telecom needs effectively. 
  • When your in-house team is overextended or requires more expertise in a particular area.
  • When you need access to cutting-edge technology and equipment that would be cost-prohibitive to purchase outright
  • When you need more flexibility and scalability in your telecoms solution. 
  • When you want to focus on other core areas of your business and outsource non-core functions like telecoms.

The telecommunications outsourcing landscape is constantly changing, and it can be hard to keep up with the latest trends. Here are some of the top trends that we see in the telecom outsourcing industry:

The telecommunications outsourcing landscape is constantly changing, and it can take time to keep up with the latest trends. However, here are some of the top trends that we see in the telecom outsourcing industry:

  • The growing demand for connectivity
  • Addressing security issues and challenges
  • Creating new offers for the latest technology paradigms as well as smart devices.
  • Increasing demand for cloud-based solutions – More and more businesses are turning to cloud-based solutions for their telecommunications needs. Flexibility, scalability, and cost savings that cloud-based solutions offer drive this trend.
  • The rise of artificial intelligence (AI) – AI is starting to make its way into the telecom industry and will significantly impact outsourcing. Companies can use AI for tasks like chatbot support, automated customer service, and fraud detection.
  • The growing importance of data
  • The rise and growth of 5G – 5G is the next generation of wireless technology to revolutionise the telecom industry. 5G will provide faster speeds, lower latency, and more capacity than ever before. This will enable new services and applications that weren’t possible with previous generations of wireless technology.
  • The increasing demand for digital transformation – As businesses increasingly look to digitise their operations, they’re turning to telecom companies for help. Telecom providers are well-positioned to assist with digital transformation initiatives, and many invest heavily in this area.
  • The need for more efficient networking
  • The rise of the Internet of Things (IoT) – The IoT is composed of devices that are connected to the internet and can communicate with each other. This trend drives the need for new telecom services connecting these devices and enabling new applications.
  • The importance of data
  • The rise of the edge is the new frontier for computing, where data is processed and stored closer to the user or device. This trend is driving the need for new telecom infrastructure that can support low-latency, high-bandwidth applications.

What are the common mistakes to avoid when outsourcing in the telecommunications industry?

Outsourcing can be a great way to complete telecom projects quickly and efficiently. However, there are some risks involved. By being aware of these risks and avoiding them, you can help ensure that your outsourcing experience is positive.

  • Unable to check references and reviews
  • Not getting a clear understanding of their process and what they will be able to deliver. 
  • Not defining the project scope properly
  • Failing to negotiate properly
  • Not staying involved in the project
  • Not being prepared for the worst

Conclusion

To wrap it up, telecommunications outsourcing has many benefits. It can be a great way to reduce costs, increase efficiency, access specialised expertise, and keep up with the latest technology. It can also help organisations focus on their core competency and attain scalability. However, businesses may also face hidden costs, difficulty finding a reputable and reliable provider, and a lack of control over operations. Likewise, some essential considerations include the third-party provider’s trustworthiness, the cost of outsourcing, data security and customer service. Therefore, to make the most of telecommunications outsourcing, businesses must carefully weigh the potential pros and cons and evaluate their options carefully before making a decision. Ultimately, an informed decision is key to achieving a successful outcome when it comes to telecommunications outsourcing. Thank you for reading our blog! 

To take your business to the next level, partner with The Lead Enquiry and connect with our BPO provider partners experienced in running BPO outsourcing for telecom companies built around safety, flexibility and innovation. Contact us today.

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