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The Services Research Company
PareekhJain
Research Director
Pareekh.Jain@hfsresearch.com
HfS Blueprint Report
Telecom Operations As-a-Service
Excerpt for Accenture
May 2016
©	2016	HfS	Research	 Ltd. Proprietary	│Page	2Excerpt	 for	Accenture
TOPIC PAGE
Executive	Summary 3
Telecom	Operations	As-a-Service 8
Research Methodology 23
Key	Market	Dynamics 28
Service	Provider	Grid 44
Service	Provider	Profile 48
Market Wrap-Up	and	Recommendations 50
About the	Author 56
Table of Contents
Executive Summary
©	2016	HfS	Research	 Ltd. Proprietary	│Page	4Excerpt	 for	Accenture
Introduction to the HfS Blueprint Report:
Telecom Operations As-a-Service
n The Telecom Operations As-a-Service HfS Blueprint Report is a new look at the evolving market
for network, fulfilment, billing and assurance services. This Blueprint builds on the 2014 HfS
Telecom Operations Services Blueprint to look in greater detail at the outsourcing of this critical
business function for telecom (wireless and wireline) and cable firms and the adoption of the 8
Ideals of As-a-Service delivery in this market as well.
n The HfS Blueprint now includes profiles and assessments of eight service providers of Telecom
Operations As-a-Service. For the first time, CSS Corp and Aegis are included.
n Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentials between
service providers across a number of facets in two main categories: innovation and execution.
n For this report, HfS has increased the attention paid to innovation criteria in particular and
adopted the new 2016 Blueprint Grid layout to assess service providers. This Grid now
recognizes up-and-coming service providers (High Potentials) that are scoring higher on
innovation criteria than on execution criteria as the providers build these practices. The Grid
includes a new group of established, high-execution service providers (Execution Powerhouses)
that have built effective delivery operations but need to innovate capabilities and offerings
further. They are in addition to the pre-existing rankings for highest overall performance
(Winners Circle) and strong combined innovation and execution performance (High Performers).
©	2016	HfS	Research	 Ltd. Proprietary	│Page	5Excerpt	 for	Accenture
HfS Definition: The Telecom Operations Services Value Chain
Network Fulfillment Assurance Billing
Network	Rollout	
Management
Order	Management Technical	Help	Desk Billing	Desk
Provisioning
Incident	&	Problem	
Management
Pricing	Management
Activation	
Field	Force	
Management
Billing	Management
Order	Fallout	
Management
Service Level
Management
Revenue	Assurance
Source:	HfS	Research,	2016
©	2016	HfS	Research	 Ltd. Proprietary	│Page	6Excerpt	 for	Accenture
Key Highlights – State of the Telecom Operations As-a-
Service Market
n An Underpenetrated Market: Our research suggests the potential global telecom operations
market (i.e., business processes under network, fulfillment, assurance, and billing) could be as
large as $10 Billion, although the current market is perhaps $3.3 Billion. Tier 1 telcos have
generally been early adopters of telecom operations services. Now, there is an opportunity to
provideservices to Tier 2 and Tier 3 telcos, too.
n As-a-Service Solutions Will Drive Growth in Telecom Operations Services: The market size of As-a-
Service solutions in telecom operations is presently about $300 Million (9% of the telecom
operations market) with the potential to reach $2.5 Billion (25% of the potential telecom
operations market).
n New Contracts Shows As-a-Service Ideals: We see elements of As-a-Service ideals in new
contracts more than in existing contracts. These new contracts are either of new greenfield
operators or MVNOs. We see some existing customers moving to As-a-Service ideals when
renegotiating deals with a revised scope.
n Collaborative Engagements, Analytics, Design Thinking, Automation, Brokers of Capability on the
Rise: Compare to our analysis couple of years back, we see the rise in collaborative engagements
driving business outcomes. Analytics is now embedded in most of the engagements. Service
providers are launching new services incorporating design thinking. We see more examples and
use cases of automation. Also, telecom operations service providers are becoming effective
brokers of capability by partnering with IT, platforms, local construction companies and telecom
domain experts.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	7Excerpt	 for	Accenture
Key Highlights – State of the Telecom Operations As-a-
Service Market (continued)
n New Services Will Grow Further: Telecom Operations As-a-Service will evolve even faster in the
next few years than it has so far. The deployment of IoT solutions, the widespread adoption of
network rollout management and other new services leveraging design thinking will lead to
significant advances in this offering in thenear term.
n Different Solution and As-a-Service Approaches by Telecom Operations Service Providers: The
eight service providers we evaluated for this Blueprint approach this market in essentially two
ways. Service providers with strong IT offerings focus more on non-voice solutions whereas pure-
play BPO service providers focus more on voice-based solutions. Service providers with strong IT
offerings have taken the lead in platforms replacing legacy stack, plug and play business solutions,
intelligent automation, holistic security, design thinking, and collaborative solutions while analytics
and social is on theagenda of all telecom operations service providers.
Telecom Operations
As-a-Service
©	2016	HfS	Research	 Ltd. Excerpt	 for	Accenture
TOOLS/INFRASTRUCTURE GOVERNANCE
Welcome to the As-a-Service Economy
HfS	uses	the	word	“economy”	to	emphasize	that	the	emerging	next	phase	of	outsourcing	is	a	more	
flexible,	outcome	focused	way	of	engaging	and	managing	resources	to	deliver	services.	Operating	
in	the	As-a-Service	Economy	means	architecting	use	of	increasingly	mature	operating	models,	
enabling	technologies	and	talent	to	drive	targeted	business	outcomes.	The	focus	is	on	value	to	the	
consumer.	
I.	THE	OPTIMUM	
OPERATING	MODEL
Outsourcing	|	Shared	Services	
GBS	|	BPaaS/SaaS/IaaS	|	
Crowdsourcing
II.	EMPOWERING	TALENT	
TO	MAKE	IT	ALL	
POSSIBLE
Capabilities	over	Skills	|
Defining	Outcomes	|	
Creativity	|	Data	Science
IV.	TECHNOLOGY	
TO	AUGMENT	
KNOWLEDGE	LABOR
Digitization	&	Robotic	
Automation	|	Analytics	|	Mobility	
|	Social	Media	|	Cognitive	
Computing
III.	A	BURNING
PLATFORM	FOR	CHANGE
Globalization	of	Labor	|
High-growth	Emerging	Markets	|	
Disruptive	Business	Models	|	
Consumerization
AS-A-SERVICE
ECONOMY
Agility	|	Collaboration
One-to-Many	|	
Outcome	Focus
Plug-and-Play	Services
©	2016	HfS	Research	 Ltd. Excerpt	 for	Accenture
Fixed	Assets																																																																																							Leveraged	Assets
2
Design	
Thinking
3
Brokers	of	
Capability
1
Write	Off	
Legacy
4
Collaborative	
Engagement
7
Holistic	
Security
5
Intelligent	
Automation 6
Accessible	
and	
Actionable	
Data
8
Plug	and	Play	
Digital	
Services
SOLUTION
Ideals
LEGACY
ECONOMY
AS-A-SERVICE
ECONOMYCHANGE	MGMT
Ideals
§ Moving	into	the	As-a-Service	Economy	means	changing	the	nature	and	focus	of	engagement	
between	enterprise	buyers,	service	providers	and	advisors
§ “As-a-Service”	unleashes	people	talent	to	drive	new	value	through	smarter	technology	and	
automation
Journey to the As-a-Service Economy
©	2016	HfS	Research	 Ltd. Proprietary	│Page	11Excerpt	 for	Accenture
Telco Pain Points Addressed by Service Providers
Leveraging As-a-Service Solutions
Pain	Points Impact Solutions
Competition	from	the	over	the	top	
(OTT)	players
§ Revenue	reduction
§ Requirement	for	opex	decrease	
§ Opex	reduction	through	leveraging
platforms,	plugand	play	solutions
analytics,	and	automation.
Requirements	for	new	4G/LTE	and	
FTTx rollouts
§ High	capex	requirement
§ Faster	time-to-market	requirement
§ Capex	efficiency	and	time-to-market	
improvement	through collaborative	
engagement,	analytics,	and	automation	
solutions
Customer	expectations	of	superior	
customer	experience	and	support	
§ High	network	availability	requirement
§ Customer	churn
§ Customized	service	requirements
§ Superior	customer	support	
requirement	across	all	channels
§ Planning	leveraging	analytics	solutions.	
Reimagining	processes	leveraging	design	
thinking.
Requirements	for	the	rollout	of	new	
services
§ Faster	time-to-market	requirement
§ Opex	reduction	while	providing	new	
services	for	services	viability
§ Developing	new	services	and	processes		
leveragingdesign	thinking.	
§ Opex	reduction	of	new	services	by	
leveragingplatforms,	plugand	play	
solutionsanalytics,	and	automation.
§ Telcos	can	address	their	biggest	pain	points	leveraging	As-a-Service	Solutions.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	12Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Writing Off Legacy
Legacy	technology	and	physical	
distribution	investments that	limit	agility	
and	create exceptions	addressed	through	
adding	internal	and	external	FTEs
Using	platform-based	solutions,	DevOps	
and	API	ecosystems	for	more	agile,	
fewer	exception-oriented	systems
§ Writing Off Legacy in Telecom Operations Services As-a-Service is still largely in the “Initial” phase. Though service
providers have started building new solutions stacks which can replace legacy telco systems, telcos are hesitant to
replace their legacy systems. So service providers are making investments in incremental solutions which are
designed to work around or integrate with existing physical and technological investments. Having said that, we
are beginning to see examples of some forward-looking telcos which are willing to replace their complete legacy
stack. Also, another ray of hope is greenfield operators, MVNOs, and FTTx operators which don’t have legacy
investments and are willing to leapfrog to new technology stacks.
Example:
§ TCS has developed HOBS, a cloud-based OSS/ BSS solution. TCS partnered with a Norwegian Telecom operator for
their legacy modernization and transformation initiative that entailed replacement of the entire divergent legacy
systems into one single HOBS platform leading to simplification product rationalization and IT transformation. As
part of the unique commercial model, TCS committed to a 36 % Opex reduction.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	13Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operation
Services: Design Thinking
Resolving	problems	by	looking	first	at	the	
process	as	the	source	of	the	solution
Understanding	the	business	context	to	
reimagine	processes	aligned	with	
meeting	client	needs
§ Leading telcos and telecom operations service providers are using Design Thinking approaches (they do not
always call these methodologies design thinking) to reimagine telecom processes, systems and services so that
they effectively respond to business challenges. Design thinking is actually quite “Expansive” in its penetration
of Telecom Operations As-a-Serviceeven if that isn’t formally recognized today.
Examples:
§ Infosys has put design thinking at the heart of the company’s strategy for developing solutions and managing
client relationships. HfS is starting to see evidence of design thinking approaches being brought to telecom
engagements.
§ TCS Telecom BPS uses design thinking to create solutions for the telecom industry. The approach starts with
understanding the telecom consumer landscape, the CSP landscape, their pain points and their strategic
imperatives and providing end-to-end solutions that resonate with these landscapes. In the last couple of years,
TCS has introduced a number of new services for telecom customers such as FTTx rollouts, sales acceleration,
telecom asset management, and IoT device management. TCS has been successful in identifying some of the
pain points of its telecom customers and develop solution offeringsaround them.
§ Accenture provides an example of design thinking where it reimagined the process of customer support to high-
value segment and implemented a technical solution that connected customers in the high-value segment to
higher-rankedagents in real-time. This resulted in increased CSATscores.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	14Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Brokers of Capability
Focusing	governance	and	operations	staff	
on	managing	to	the	letter	of	the	contract	
and	the	decimal	points	of	service	levels
Orienting	governance	to	source	expertise	
from	all	available	sources,	both	internally	
and	externally,	to	address	capability	gaps
§ Brokers of capability is the ability of a service provider to source expertise from all available sources, both
externally and internally to address client requirements. It helps service providers to identify current and
anticipated needs to deliver business results and to manage capability effectively to deliver those outcomes.
Telecom operations service providers work with the variety of players in the ecosystem – consulting firms, IT
services firms, telecom experts, field partners, construction companies, etc. We see this Ideal as “Extensively”
available in today’smarket.
Examples:
§ TCS provides clients with a wide breadth of expertise in support of the telecom operations. TCS has partnerships
with local field and construction companies in different geographies and it leverages them to provide total
network rollout solutions to telcos. It also brings the telecom domain expertise of telecom companies of Tata
Group and offers them on demand in its engagements. Finally, TCS also uses its expertise in IT services, Network
services and telecom platformsin delivering a total solution to telcos.
§ Accenture has developed a structured platform-led crowdsourcing approach for tapping external and internal
capabilities on demand for its engagement (Accenture Liquid Workforce). Accenture has developed a compelling
vision and roadmap of how telcos can transform to become integrated digital service providers (IDSPs) to
compete in the digital economy. The Operations team is working with other Accenture Growth Platforms
(Strategy, Digital) in delivering on the IDSPpromise.
§ Other broad-based service providers such as Tech Mahindra, Wipro, Infosys also leverage capabilities in IT and
BPO in telecom engagements.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	15Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Collaborative Engagement
§ The key to a sustainable outsourcing engagement is collaboration. Traditionally, business process outsourcing
work has been directive from service buyers to service providers and managed strictly by procurement
organizations. As telcos are facing the threat of survival in the digital world, they are leveraging telecom
operations service providers more strategically. HfS is seeing a move over time to more collaboration
engagement where trust and experience are in place, often through shared outcomes and results. The adoption
of practices of collaborative engagement is “Expansive” in Telecom Operations today.
Examples:
§ TCS employs a three-level model of collaborative engagement with strategic discussions at the senior
management level, the tactical collaboration between operational managers (supported by a Customer
Engagement Portal) and operational reviews at the day-to-day level. This coupled with its ValueBPS™ approach,
which aligns telcos’ strategic objectives with key business metrics, TCS delivers on strategic business outcomes
such as telecom revenue and margin metrics, NPS,time to market, opex and capex reduction, etc.
§ Accenture contracts and manages its telecom engagements with the focus on governance, business outcomes
and co-innovation. It has a three-layer approach to governance ensuring tactical, operational and strategic
issues and opportunities with a near-, mid-and long-term focus are proactively managed. Clients pointed to
tangible business outcomes such as capex efficiency, process efficiency, cost reduction, customer satisfaction,
delivered by Accenture.
Evaluating	relationships	on	baselines	of	
cost,	effort	and	labor
Ensuring	relationships	are	contracted	to	
drive	sustained	expertise	and	outcomes
©	2016	HfS	Research	 Ltd. Proprietary	│Page	16Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Intelligent Automation
Operating	fragmented	processes	across	
multiple	technologies	with	significant	
manual	interventions
Using	of	automation	and	cognitive	
computing	to	blend	analytics,	talent	and	
technology
§ Intelligent Automation leveraging RPA, autonomics, cognitive and analytics is gaining the interest of telcos. Most
of the early automation case studies in telco business process delivery came from either order management or
customer support. We have lately observed automation examples in other telco processes such as network
design, billing audits, field force management, incident and problem management. Almost all service providers
are now offering automation solutions either on their own platforms or leveraging third party solutions. The
adoption of intelligent automation is “Expansive” in Telecom Operations today.
Examples:
§ Wipro has a comprehensive approach to intelligent automation in telecom operations combing automation and
analytics. Wipro calls it Cognitive RPA which combines the power of analytics with robotic automation and can
deliver a combined improvement of cycle times by higher than 25%, additional operational cost reduction by
35% over the traditional approach. Wipro has successfully leverage intelligent automation in several telco
engagements.
§ Accenture Operations is committed to bringing higher levels of automation to all of its engagements. Last year
the total impact of all automation solutions was a 14 percent productivity improvement. In telecom operations,
Accenture’s automation initiatives cover complete value chain including network, fulfillment, assurance and
billing.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	17Excerpt	 for	Accenture
AUTOMATION
• Service	Desk	and	Web	Chat	Automation:	Increasing	productivity	of	L1	support	with	automated	tools.	
The	use	of	robots	to	answer	simple	queries	and	repetitive	questions.
• Field	Force	Automation:	Enabling	field	technicians	to	work	effectively	by	automating	some	of	their	
processes	and	providing	technical	and	operational	expertise	on	demand.	Using	Google	Glass	to	
automate	video	transfer	of	network	repair	and	automate	ticket	closure.	Using	automation	to	reduce	
false	or	ghost	tickets,	thus	reducing	the	mean	time	to	repair.		
• Network	Drawing	Automation:	Reducing	network	drawing	time	by	automating	network	diagram	
production	and	analysis	process.	
• Order	Management	and	Provisioning	Automation:	Performing	automatic	quality	checks	in	order	
management	and	provisioning	processes,	thus	saving	activation	time.	
• Billing	Automation:	Automating	the	majority	of	audit	checks	in	the	billing	process,	thus	reducing	FTE	
effort	and	AHT.	
• Automated	Self-Care:	Automated	technical	scan	for	subscribers,	to	identify	issues	that	could	impede	
service	performance.
• Application	Automation:	Provide	a	unified	or	single	screen/source	of	information	to	agents	by	
eliminating	switching	from	screen	to	screen.	Provide	a	unified	application	to	the	workforce	in	the	field	
by	integrating	other	applications	for	the	workforce	in	the	field.
Automation Examples in Telecom Operations As-a-Service
©	2016	HfS	Research	 Ltd. Proprietary	│Page	18Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Accessible and Actionable Data
Performing	ad-hoc	analysis	on	
unstructured	data	with	little	integration	or	
business	context
Applying	analytics	technologies,
processes	and	resources	to	relevant	data	
sets	to	derive	insights	that	can	help	
improve	an	enterprise
§ Taking advantage of Accessible and Actionable Data is at the very heart of Telecom As-a-Service operations.
Telcos were the early adopter for actionable analytics when they started leveraging analytics to reduce customer
churn. Now analytics is leveraged across all telecom processes including network, fulfillment, assurance, and
billing for deriving insights and that either the service provider and/or the telco can act upon to improve the
business. This Ideal is “Extensive” in its application within the current Telecom Operations Services As-a-Service
market.
Examples:
§ Accenture has embedded analytics in 100% of telecom operations engagements. Accenture combines financial,
business/operations, network and customer analytics in a holistic way. Accenture’s analytics team has
developed analytics apps for telecom operations e.g. Incident Management, Ticket Triage and Intelligent Order
Management. These appsare customizable per client requirement and reduce time to generate insights.
§ TCS has comprehensive analytics offerings and offers analytic solutions across the telecom value chain to help
telcos increase sales, decrease operational cost, reduce churn and fraud, and improve risk management. TCS
also has filed two patents fortelecom analytics frameworkrecently.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	19Excerpt	 for	Accenture
ANALYTICS
• Churn	Analytics:	Analyze	and	predict	potential	churn.	For	example:	early	attrition	analysis,	impact	of	
field	dispatches	on	customer	churn,	impact	of	customer	interactions	(frequency	and	mode)	on	
customer	churn,	impact	of	subscriber	demographics	on	customer	churn,	impact	of	usage	on	customer	
churn,	suggesting	NBA	(next	best	actions),	campaign	analytics.
• Real-time	Interaction	Analytics:	Assessment	of	positive	and	negative	interaction	in	the	first	few	
seconds	of	the	call,	which	provides	the	opportunity	to	intervene	and	change	the	course.	
• Billing	Analytics:	Revenue	enhancement	through	analytics	of	unbilled	orders.	Circuit	inventory	
analytics.	Impact	of	subscriber	demographics	on	customer	billing.	
• Order	Analytics:	Order	backlog	analytics.	Order	fallout	analytics	to	plug	revenue	leaks.
• Network	and	Assurance	Analytics:	Network	capacity	analytics	for	optimum	usage.	Predictive	network	
analytics.	Financial	analytics	for	selecting	optimum	network	maintenance	and	augmentation	plans.
• Performance	Analytics:	Analytics	for	improving	first-time-right	ratio.	Analyze	and	report	performance	
according	to	service	level	agreements.	
• Regulatory	and	Fraud	Analytics: Carry	out	regulatory	support	and	fraud	analytics	for	any	inflated	
usage	charges.	
• Contract	Analytics:	Conduct	contract	innovation	based	on	usage	and	costing	analytics	in	different	
geographic	or	product	segments.	
Analytics in Telecom Operations As-a-Service
©	2016	HfS	Research	 Ltd. Proprietary	│Page	20Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Holistic Security
Responding	reactively	with	post-event	
fixes.	Little	focus	on	end-to-end	process	
value	chains
Proactively	managing	digital	data	across	
service	chain	of	people,	systems	and	
processes
§ Holistic Security is a critical element in telecom operations as telecom operations are highways on which
enterprise and customer data flows. However, it is handled by the separate specialized group which is often part
of IT or network practices. From BPO service providers, we don’t hear much about holistic security. We believe
security services should be part of the total solution and aligned to BPO or operations group too. In IoT world,
the data will explode and telecom operations group will be the critical part of delivering holistic security
solutions to telcos. We are observing that a couple of service providers are beginning to align their security
practices with operations group and this trend will become extensive over time.
Example:
§ Accenture has 360° approach addresses spectrum of security across people, processes, technology. Accenture’s
Security practice is part of Accenture Operations. The core value proposition for combining security with
operations team is collaborations. This is true both within the security team and through the locational synergy
with Accenture’s existing cloud, analytics, automation, and operations staff already located in Bangalore. We’re
hopeful this collaboration will result in a greater level of system awareness by all parties, and potential decrease
the time to plan foror respond to cyber threats.
§ CSS Corp is a niche service provider offering network and assurance services to telecom customers. Along with
this, it also has enterprise security practice which is aligned with assurance or tech support practice. As they are
developing tech support solution for IoT they are also aligning them with security solutions for potential threats
of cyber crime in IoT.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	21Excerpt	 for	Accenture
How As-a-Service Is Taking Shape in Telecom Operations
Services: Plug and Play Digital Business Services
Undertaking	complex	and	often	painful	
technology	transitions	to	reach	a	steady	
state
Plugging	into	“ready	to	go”	business	
outcome–focused,	people,	process	and	
technology	with	security	measures	
§ Telecom operations service providers have started partnering with clients in developing and deploying Plug and
Play Digital Business Services. As telcos are hesitant to replace their legacy systems, service providers are making
investments in incremental solutions which are designed to work around or integrate with existing physical and
technological investments. Typically, they have taken the form of point solutions for order management, billing
management, problem or incident management, contact center, social media, revenue assurance, analytics, etc.
We see these solutions as being at the “Expansive” stage of development with significant progress forecasted
over the next few years as telcos become more comfortable with these solutions.
Example:
§ Tech Mahindra has developed an in-house Carexa platform which consists of in-house tools such as OrderVu,
OrderFix, Socio, Tecnico, and Uno and also third party tools. Tech Mahindra offers business process as a service
(BPaaS) to the telcos on Carexa platforms. OrderFix is a cloud-based order orchestration platform, OrderVu
helps plug revenue leakage, Socio helps in social media support, Tecnico helps in remote technical support, and
Uno is automation.
§ The TCS platform components are built with a modular design instead of monolithic applications. Taking
systems based approach platform solutions cater to entire processes rather than just point applications. This
enables customers to “pick-and-choose” services and applications from platform portfolio. TCS has integrated
its differentpoint solutions with its flagship OSS/BSSsolutionHOBS.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	22Excerpt	 for	Accenture
PLUG &	PLAY	PLATFORMS
• Service	Assurance:	A	cloud-based	platform	for	incident	management	that	drives	significant	savings	
and	shortens	time	to	repair	by	ensuring	tickets	are	solved	at	the	first	instance.
• Provisioning	Services:	A	cloud-based	provisioning	and	porting	platform	that	provides	automated	
port-in	number	porting	between	different	carriers.	
• Order	Management:	A	cloud-based	platform	for	orchestrating	and	optimizing	the	order	to	activation	
process.	It	provides	visibility	into	the	complete	order	management	process.
• Social	Media	Command	Center:	A	cloud-based	platform	for	providing	social	media	support	and	data-
based	customer	engagement.
• Order	Fallout	Management: A	cloud-based	platform	for	predicting	potential	order	fallouts	and	
proactively	fixing	them.
• Revenue	Assurance:	A	cloud-based	platform	for	detecting,	probing	and	correcting	revenue	leakage.
• Remote	Technical	Support:	A	cloud-based	platform	for	providing	billable	remote	technical	support	to	
customers.
• OSS/BSS	Solution:	A	cloud-based	platform	with	pre-built	eTOM	aligned	telecom	processes.
Plug & Play Business Solutions in Telecom Operations
As-a-Service
Research Methodology
©	2016	HfS	Research	 Ltd. Proprietary	│Page	24Excerpt	 for	Accenture
Blueprint Research Methodology
Data	Summary
n Data	was	collected	in	Q1	2016	and	Q2	2016,	covering	
buyers,	providers	and	advisors/influencers	of	Telecom	
Operations	Services.
n More	than	500	data	points	were	collected,	covering	8	
major	service	providers.	
Participating	Service	Providers
This	Report	Is	Based	On:
n Tales	from	the	Trenches:	Interviews	
were	conducted	with	buyers	who	have	
evaluated	service	providers	and	
experienced	the	services.	Some	were	
supplied	by	service	providers,	but	many	
interviews	were	conducted	by	HfS	
Executive	Council	members	and	
participants	in	our	extensive	market	
research.
n Sell-Side	Executive	Briefings:	Structured	
discussions	 with	service	providers	were	
intended	to	collect	data	necessary	to	
evaluate	innovation,	execution	and	
market	share,	and	deal	counts.
n Publicly	Available	Information:	Financial	
data,	website	information,	presentations	
given	by	senior	executives	and	other	
marketing	collateral	were	evaluated.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	25Excerpt	 for	Accenture
HfS Telecom Operations As-a-Service Blueprint Scoring
Percentage Breakdown
EXECUTION 100.00%
1. Quality of	Customer	Relationships 14.00%
2. Quality	of	Customers 10.00%
3. Solution	&	Delivery	Capabilities 30.00%
4. Geographic	Spread	&	Scale 16.00%
5. Pricing	&	Commercial	Models 20.00%
6. Applicability	to	DifferentSegments 10.00%
INNOVATION 100.00%
1. Strategy,	Innovation	&	Investments 20.00%
2 Technology,	Tools 12.00%
3. BusinessOutcomes	Measurement 12.00%
4. Continuous	Improvement 10.00%
5. Plans	for	As-a-Service 16.00%
6. Business	fromemerging	areas	(SMAC,	Automation,	IoT) 28.00%
TOTAL 200.00%
©	2016	HfS	Research	 Ltd. Proprietary	│Page	26Excerpt	 for	Accenture
Execution Criteria Definitions
EXECUTION
How	well	does	the	service	provider	execute	on	its	contractual	agreement,and	how	
well	does	the	provider	manage	the	client/provider	relationship?
Quality	Of	Service	Provider’s	Customer	
Relationship
How	engaged	is the	executive	and	management	team	in	defining	and	managing	the	
delivery	of	business	services?		What	is	the	scale	and	duration	of	customer	
engagements?
Quality	Of	Customers
How	is	the	quality	of	service	providers	customers?		How	many	of	the		top	50	telcos	are	
convinced	of	service	providers	capabilities?
Delivering	Actual	Services
What	are	the clients’	and	market’s	overall	impression	of	the	quality	of	service	across	
the	value	chain	from	this	service	provider?	How	deep is	the	telecom	domain	expertise	
(talent	and	solutions)	in	understanding	and	then	addressing	issues?	Is	the	delivery	
capability	widespread	across	different	delivery	channels?	
GeographicFootprint	And	Scale
How	does	this	service	provider	use	a	global	delivery	footprint	to	meet	clients’	needs?	
Does	service	provider	have	scale	to	make	investments	in	the	delivery?
Pricing And	Commercial	Models
How	flexible	are	providers	when	determining	pricing	of	contracts?	How	does	their	
pricing	mix	compares	with	the	industry?	Is	there	an	active	effort	on	the	part	of	the	
service	provider	to	create	value	year	on	year	beyond	the	contract	commitments?
Applicability	To	DifferentSegments
How	deep is	the	expertise	in	delivering	solutions	across	different	segments	– wireless,	
wireline	and	cable?	How	does	their	customer mix	compares	with	the	industry?
©	2016	HfS	Research	 Ltd. Proprietary	│Page	27Excerpt	 for	Accenture
Innovation Criteria Definitions
INNOVATION
How	well	does	the	service	provider	innovate	its	offering(s)	in	response	to	market	demand,	
client	requirementsand	its	own	vision	for	how	the	telecom	operations	market	will	evolve?
Vision,Innovation	And	Investments
What	is	the	service	provider’s	vision for	the	evolution	of	telecom	operations	services?			Is	
there	a	clear	strategy	for	delivering	telecom	operations	and	are	there	identifiable	investments	
in	place	to	realize	this	strategy	today?		Do	customers	rate	them	as	innovative?	Are	there	
examples	of	innovation	in	engagements	shared	by	customers	and	service	providers?	Is	the	
service	provider	able	to	leverage	acquisition	and	partnerships	 in	meeting	clients’	specific	and	
varied	talent	and	technology	requirements	over	time?
Application And	Platform	Strategy	For	
Supply	Chain	Management	Services
What	is	the	role	of applications	and	platforms	in	the	service	provider’s	offering	strategy?	Are	
the	selected	platforms	developed	in-house,	or	are	they	provided	by	third	parties?	Is	there	a	
demonstrable	intent	to	maintain	and	enhance	the	in-house	platforms?
Business	Outcomes	Measurement
Clear	understanding	of	what	business	outcomes	exist	for	telecom	customers	and	how	the	
service	provider	will	deliver	these	business	outcomes using	collaborative	engagements.
Continuous	Improvement
How	well	does	the	provider	execute	on	improving	business	process	and	capabilities	of	their	
solutions?	How	has the	service	provider	taken	feedback	and	incorporated	it	into	the	solution	
and	delivery?	
Plans	For	As-a-Service
Does	the	provider	have	a	vision	for	how	the	As-a-Service	Economy is	developing	and	how	they	
need	to	respond	as	a	service	provider	to	these	changes	both	in	terms	of	specific	capabilities	
and	in	their	commercial	and	operating	approach?
Business	from	Emerging	Areas	–
Digital	&	IoT
How	are	service	providers	looking	at	emerging	areas.	Do	they	have	plans	to	leverage	these	
emerging		areas	and	integrate	them	into	their	solutions.	Examples	include:	Digital	and	IoT.
Key Market Dynamics
©	2016	HfS	Research	 Ltd. Proprietary	│Page	29Excerpt	 for	Accenture
The Telecom Operations Services Value Chain
Network Fulfillment Assurance Billing
Network	Rollout	
Management
Order	Management Technical	Help	Desk Billing	Desk
Provisioning
Incident	&	Problem	
Management
Pricing	Management
Activation	
Field	Force	
Management
Billing	Management
Order	Fallout	
Management
Service Level
Management
Revenue	Assurance
Source:	HfS	Research	2016
©	2016	HfS	Research	 Ltd. Proprietary	│Page	30Excerpt	 for	Accenture
Description of Telecom Operations Processes & Sub
processes
Process Sub-processes
Network:	The	Network	process	
is	responsible	for	building	and	
maintainingphysical	network	
across	coverage	area	for	
providing	telecom	and	cable	
services.
Network	Rollout	Management:	This	involves	design	and	project	management	of	green	field		
or	brown	field	telecom	network	rollouts.	The	telecom	networks	can	be	wireless,	broadband,	
or	cable.	
Fulfillment:	 The	Fulfillment	
process	is	responsible	for	
providing	customers	with	their	
requested	telecom	products	and	
services	in	a	timely	and	correct	
manner.	This	process	informs	the	
customers	of	the	status	of	their	
purchase	order,	ensures	
completion	on	time,	as	well	as	
ensuring	a	delighted	customer.	
Order	Management:This	sub-process	is	responsible	for	accepting	and	issuing	customer	orders	
including	checks	on	credit	worthiness,	order	inquiries,	order	status	and	tracking.	It	also	
involves	complex	order	orchestration	with	multiple	dependencies.
Activation: The	sub-process	for	service	activation	for	customers	to	ensure	first	time	right	and	
that	customers	receive	stable	and	noiseless	service.	
Provisioning: Provisioning	is	a	sub-process	of	preparing	and	equipping	a	network	to	allow	it	to	
provide	new	services	to	its	customers.	It	involves	designing	and	assigning	service	
configurations	and	network	components.
Order	Fallout	Management:Order	falloutoccurs	when	an	order	fails	during	processing.	Order	
fallout	is	often	called order	failure.Fallout	managementis	the	process	to	resolve	fallout	and	
allow	an	order	to	continue	processing.It	also	involves	the	use	of	analytics	in	reporting	and	
reducing	order	failure	rate.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	31Excerpt	 for	Accenture
Description of Telecom Operations Processes & Sub
processes
Process Sub-processes
Assurance:	These	processes	are	
responsible	for	the	execution	of	
proactive	and	reactive	
maintenance	activities	to	ensure	
that	services	provided	to	
customers	are	continuously	
available	and	to	SLA	or	QoS	
performance	levels.		It	involves	
management	of	issues	related	to	
customer	services	and	to	ensure	
minimum	impact.	
Technical	Helpdesk:	Integrated	Help	Desk	or	Service	Desk	(L1)	with	the	technically	skilled	
workforce	which	are	able	to	close	tickets.	
Incident	Management: The	sub-process	to	ensure	tickets	are	solved	at	right	instance.	It	also	
includes	triage	and	analytics	to	reduce	cost	and	mean	time	to	repair.
Problem	Management:Thesub-process	to	perform	root-cause	analytics	and	manage	the	
lifecycle	of	problems	with	the	objective	of	prevention,	eliminating	recurring	incidents,	and	
minimizing	the	impact	of	incidents	that	can’t	be	prevented.	
Field	Force	Management:The	sub-process	to		support	Field	Force	manage	their	tasks	
efficiently,	effectively	and	with	customers	satisfaction	by	providing	them	expertise	and	insight	
on	technical	and	operational	issues.	It	involves	capacity	planning,	forecasting,	scheduling,	
optimization,	dispatch	and	spare	parts	management,	etc.
Service	Level	Management:Manage	and	report	carrier	performance	by	gathering,	validating	
and	assessing	data	reflecting	the	performance	of	carriers	in	line	with	established	service	
levels.	
Billing:	These	processes	are	
responsible	for	the	production	of	
timely	and	accurate	bills,	for	
providing	pre-bill	use	information	
and	billing	to	customers,	for	
processing	their	payments,	and	
performing	payment	collections.	
It	also	involves	doing	revenue	and	
billing	analytics	and	prevent	fraud	
and	revenue	leakage.
Billing	Helpdesk: It	handles	customer	inquiries	about	bills,	provides	billing	inquiry	status	and	
is	responsible	for	resolving	billing	problems	to	the	customer’s	satisfaction	in	a	timely	manner.
Billing	Management:A	sub-process	for	producing	timely	and	accurate	bills	by	performing	all	
checks.	It	also	involves	validation	of	invoices	from	the	supplier	and/or	partners	to	ensure	they	
have	the	correct	billing	and	invoicing	details,	and	identify	any	disputes.	
Pricing	Management:Manage	the	costing	database	and	quotes.	Support	with	pricing	data	
and	analytics	in	enterprise	pre-sales	and	carrier	contract	negotiations.
Revenue	Assurance:	Carry	out	regulatory	support	and	fraud	analytics.	Maintain	the	data	
format	in	line	with	regulatory	guidelines.	Analytics	to	prevent	fraud	for	any	pumped	usage	
charges	with	partners	or	any	loss	due	to	under-billing	or	under-reporting		of	circuit	inventory.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	32Excerpt	 for	Accenture
Telecom Operations Is Beginning to Incorporate the Ideals
of the As-a-Service Economy
IDEAL
AS-A-SERVICE
IDEAL	DEFINITION
NONEXISTENT INITIAL EXPANSIVE EXTENSIVE
ALL
PERVASIVE
Write	Off	Legacy
Using	platform-based	solutions,	DevOps	and	API	
ecosystems	for	more	agile,	fewer	exception-
oriented	systems
2016
Design	Thinking
Understanding	the	business	context	to	
reimagine	processes	aligned	with	meeting	client	
needs
2016
Brokers of	
Capability
Orienting	governance to	source	expertise	from	
all	available	sources,	both	internally	and	
externally,	to	address	capability	gaps
2016
Collaborative
Engagement
Ensuring relationships	are	contracted	to	drive	
sustained	expertise	and	defined	outcomes 2016
Intelligent	
Automation
Using automation	and	cognitive	computing	to	
blend	analytics,	talent	and	technology 2016
Accessible	and	
Actionable	Data
Applying	analytics	technologies,	processes	and	
resources	on	relevant	data	sets	to	derive	
insights	that	can	help	improve	an	enterprise
2016
Holistic	Security
Proactively	managing	digital	data	across	service	
chain	of	people,	systems	and	processes 2016
Plug and	Play	
Digital	Business	
Services
Plugging	into	“ready	to	go”	business outcome–
focused,people,	process	and	technology	
solutions	with	security	measures
2016
©	2016	HfS	Research	 Ltd. Proprietary	│Page	33Excerpt	 for	Accenture
Multi-Dimension Analysis* of Telecom Operations Services
Customers
Geography
Service
Offerings
Telecom	Operations	
Services
Training
Customer	
Relationships
Customer	Quality
* Based	on	participating	service	provider’s	data
Pricing
Onshore	vs.	
Offshore
©	2016	HfS	Research	 Ltd. Proprietary	│Page	34Excerpt	 for	Accenture
Current Services Spread in Telecom Operations Services
TELECOM	OPERATIONS
SERVICES	SEGMENTATION	
Assurance	is	the	leading	service	
accounting	for	about	half	of	the	
revenue	followed	by	fulfilment	and	
billing.	Network	services	are	at	an	
early	stage	of	evolution	and	
service	providers	are	developing	
capabilities.
Source:	HfS	Research,	2016
Assurance
45%
Fulfillment
31%
Billing
15%
Network
9%
Assurance Fulfillment Billing Network
TELECOM	OPERATIONS	SERVICES	REVENUE	BREAKUP	BY	SERVICES
©	2016	HfS	Research	 Ltd. Proprietary	│Page	35Excerpt	 for	Accenture
Current Customer Segmentation in Telecom Operations
Services
TELECOM	OPERATIONS	
CUSTOMER	SEGMENTATION	
Wireless		is	the	leading	customer	
segment	followed	by	wireline	and	
cable	companies.	
According	to	service	providers,	
market	growth	is	coming	from	
different		emerging	areas		in	all	
segments.	
• Wireless:	MVNO,	Greenfield	
operators,	LTE/4G	rollouts
• Wireless:	Broadband/	Fiber	
rollouts
• Cable:	Content	Digitization
TELECOM	OPERATIONS	SERVICES	REVENUE	BREAKUP	BY	CUSTOMER	SEGMENTS
Source:	HfS	Research,	2016
Wireless
47%
Wireline
38%
Cable
15%
Wireless Wireline Cable
©	2016	HfS	Research	 Ltd. Proprietary	│Page	36Excerpt	 for	Accenture
Current Delivery Channel Spread in Telecom Operations
Services
TELECOM	OPERATIONS					
CHANNEL SEGMENTATION	
Voice		is	the	dominant	channel	
segment	followed	by	data	and	
analytics.	
According	to	service	providers,	
share	of	voice	is	coming	down	and	
share	of	data	and	analytics	is	
growing.	
Though	share	of	voice	is	coming	
down	the	quality,	talent	
requirements	are	going	up.	Also	
AHT	is	going	up	as	now	subscribers	
have	self	serving	option	for	many	
problems	and	they	call	mostly	for		
complex	problems.
TELECOM	OPERATIONS	SERVICES	REVENUE	BREAKUP	BY	DELIVERY	CHANNELS
Source:	HfS	Research,	2016
Voice
60%
Data
35%
Analytics
5%
Voice Data Analytics
©	2016	HfS	Research	 Ltd. Proprietary	│Page	37Excerpt	 for	Accenture
Current Geographical Spread in Telecom Operations
Services
TELECOM	OPERATIONS	
GEOGRAPHICAL	
SEGMENTATION	
Asia	Pacific	&	ROW	is	the	largest	
market	for	leading	service	
providers.	According	to	service	
providers	Europe,	Asia-Pacific	&	
ROW	have	more	growth	potential	
than	North	America.	
TELECOM	OPERATIONS	SERVICES	REVENUE	BREAKUP	BY	GEOGRAPHY
Asia-Pacific	&	
ROW
55%Europe
24%
North	America	
21%
Source:	HfS	Research,	2016
©	2016	HfS	Research	 Ltd. Proprietary	│Page	38Excerpt	 for	Accenture
Current Pricing Models Deployed in Telecom Operations
Services
TELECOM	OPERATIONS	SERVICES	REVENUE	BREAKUP	BY	PRICING	MODELS
Source:	HfS	Research,	2016
Time	&	
Material
40%
Fixed	Price
30%
Transaction
Based
25%
Gain	Share	5%
PRICING	FOR
TELECOM	OPERATIONS	SERVICES
• The	pricing	in	telecom	operations	services	
is	predominantly	time	and	material	(T&M)	
and	fixed	prices
• HfS’	discussions	 with	both	buyers	and	
service	providers	have	indicated	a	growing	
demand	for	more	transaction	based	and	
gain-share	based	pricing	models.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	39Excerpt	 for	Accenture
Current Onshore/ Nearshore/ Offshore Split in Telecom
Operations Services
GEOGRAPHIC	SPLIT
IN	TELECOM	OPERATIONS	SERVICES
• More	than	90%	of	the	telecom	operations	
service	headcount	is	either	offshore	or	
onshore.	
• According	to	service	providers	the	onshore	
headcount	is	growing	faster.	
TELECOM	OPERATIONS	SERVICES	HEADCOUNT	BREAKUP
Source:	HfS	Research,	2016
Offshore
56%Onshore
38%
Nearshore
6%
©	2016	HfS	Research	 Ltd. Proprietary	│Page	40Excerpt	 for	Accenture
Investment in Training Hours/ FTE
TRAINING HOURS/FTE
• Telecom	operations	service	providers	spend	
about	80	hours/	FTE/	year	on	telecom	
specific	training	on	average.	Assuming	
average	2000	hours/	year	this	will	be	about	
4%	of	the	working	hours.
• There	is	a	large	variation	among	service	
providers	in	training	hours	from	25	
hour/FTE/year	to	300	hours/	FTE/year.		
WORKING	HOURS/FTE	BREAKUP
Source:	HfS	Research,	2016
Other
94%
Training	Hours
4%
©	2016	HfS	Research	 Ltd. Proprietary	│Page	41Excerpt	 for	Accenture
Customer Relationships: Percentage of Customers With
$5M+ ACV
CustomersWith	$5	Million	+	ACV
• Telecom	operations	service	providers	have	
on	average	40%	of	their	customers	
accounts	with	$5	million+	ACV.
• There	is	a	large	variation	among	service	
providers	in	$5	million+	ACV	accounts	from	
25%	to	75%	in	percentage.
TELECOM	OPERATIONS	SERVICESCUSTOMERS	BREAKUP	BY	ACV
Source:	HfS	Research,	2016
Other
60%
$5	Million+	
ACV
40%
©	2016	HfS	Research	 Ltd. Proprietary	│Page	42Excerpt	 for	Accenture
Customer Relationships: Percentage of Customers With 5
Years+ Relationship
CustomersWith	5	Years+	Relationship
• Telecom	operations	service	providers	have	
on	average	46%	of	their	customers	
accounts	with	5	years+	relationship.	
• The		variation	among	service	providers	in		5	
years+	accounts		is	from	33%	to	53%	in	
percentage.
TELECOM	OPERATIONS	SERVICES	CUSTOMERS	BREAKUP	BY	RELATIONSHIP	YEARS
Source:	HfS	Research,	2016
Other
54%
5	Years+	
Relationship
46%
©	2016	HfS	Research	 Ltd. Proprietary	│Page	43Excerpt	 for	Accenture
Customer Quality: Percentage of Customers In Top 50
Telcos
CustomersIn	Top	50	Telcos
• Telecom	operations	service	providers	have	
on	average	43%	of	their	customers	
accounts	among	top	50	telcos.
• There	is	a	large	variation	among	service	
providers	for	top	50	telcos	as	customers.	It	
varies	from	12%	to	75%	in	percentage.
TELECOM	OPERATIONS	SERVICES	CUSTOMERS	BREAKUP	BY	TOP	50	TELCOS
Source:	HfS	Research	2016
Other
57%
Top	50	Telcos
43%
Service Provider Grid
©	2016	HfS	Research	 Ltd. Proprietary	│Page	45Excerpt	 for	Accenture
To	distinguish	service	providers	that	show	competitive	differentiation	in	a	particular	line	of	delivery	with	
progress	in	realizing	the	“As-a-Service	Economy”	of	business	outcome-oriented,	on-demand,	talent	+	
technology	services,	HfS	awards	these	providers	the	“As-a-Service	Winners	Circle”	designation.	
Guide to the Blueprint Grid
EXECUTION	 INNOVATION
As-a-Service	Winners Circle
show	excellence	recognized	by	clients	
in	the	8	Ideals	in execution	and	
innovation
Collaborative	relationships	with	clients,	
services	executed	with	a	combination	of	
talent	and	technology as	appropriate,	and	
flexible	arrangements.
Articulate	vision	and	a	“new	way	of	
thinking,”	have	recognizable	investments	in	
future	capabilities and strong	client	
feedback	and are	driving	new	insights and	
models.
High	Performers
demonstrate	strong	capabilities	yet	
lack	an	innovative	vision	or
momentum	in	executing	the	vision
Execute	some	of	the	following	areas	with	
excellence:	worthwhile	relationships	with	
clients,	services	executed	with	“green	
lights”	and	flexibility	when	meeting	clients’	
needs.	
Typically, describe	a	vision	and	plans	to	
invest	in	future	capabilities	and	
partnerships	for	As-a-Service,	and	illustrate	
an ability	to	leverage	digital	technologies	
and/or	develop new	insights	with	clients.
High Potentials
demonstrate	vision	and	strategy	but	
have	yet	to	gain	momentum	in	
executing them
Early	results	and	proof points	from	
examples	in	new	service	areas	or	
innovative	service	models,	yet	lack	scale,		
broad	impact	and	momentum	in	the	
capability	under	review.	
Well-plotted strategy	and	thought	
leadership,	showcased	use	of	newer	
technologies	and/or	roadmap	and	talent	
development	plans.	
Execution	Powerhouses
demonstrate	solid,	reliable	execution,	
but	have	yet	to	show	significant	
innovation	 or	vision
Evidence of	operational	excellence;	
however,	still	more	of	a	directive	
engagement	between	service	provider	 and	
its	clients.
Lack of	evident	vision	and	investment	in	
future-oriented	 capability,	such	as	skills	
development,	 “intelligent	operations”	or	
digital	technologies.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	46Excerpt	 for	Accenture
INNOVATION
EXECUTION
Excellent	at	Innovation	and	ExecutionInvesting	in	Innovation	to	Change
Building	All	Capabilities Execution	Is	Ahead	of	Innovation
AS-A-SERVICE
WINNER’S
CIRCLE
EXECUTION
POWERHOUSES
HIGH
POTENTIALS
HIGH
PERFORMERS
HfS Blueprint Grid: Telecom Operations As-a-Service
Accenture TCS
Aegis
CSS	Corp
Firstsource
Infosys
Wipro
Tech	Mahindra
©	2016	HfS	Research	 Ltd. Proprietary	│Page	47Excerpt	 for	Accenture
Major Service Provider Dynamics: Highlights
EXECUTION
• Infosys Delivers and Manages Attrition: Reference clients
were particularly happy and praise Infosys’ delivery and
attrition management in the engagements. In one particular
engagement, Infosyshas retained key delivery personnel for
the last ten years and helped them grow and provide value
to the client withoutdisruption.
• Tech Mahindra Has Extensive Geographic Footprint in
Emerging Markets: Tech Mahindra started its African
operations in 2011 and now has a delivery footprint in five
African countries with about 2,000. This local presence
gives confidenceto local and regional telcos to outsource.
• Aegis Has Competitive Pricing: Customer references were
very satisfied with Aegis’ pricing, which they say is very
competitive in comparison to other service providers
partially as Aegis delivers from Tier 2 and Tier 3 cities in
India.
• TCS Grows Fast: TCS has one the highest growth rates in the
last two years among service providers evaluated for this
study. As a consequence, TCS has one of the largest
number of telecom customers among its peer group. This
shows the strength of value proposition of TCS to both new
and existingcustomers.
• Accenture Leverages its Quality Of Customers: Accenture
has one the highest number of clients in the ranks of the
top 50 telcos.
INNOVATION
• Accenture Has Compelling Vision of Digital Telco in As-a-
Service Economy: Accenture has developed a compelling vision
and roadmap of how telcos can transform to become integrated
digital service providers (IDSP) to compete in the digital
economy. The Operations team is working with other Accenture
Growth Platforms to deliver on the IDSP promise. The As-a-
Service Ideals areintegral to its strategy and offerings.
• TCS Has Introduced New Offerings For As-a-Service Economy:
In the last couple of years TCS has introduced a number of new
services for telecom customers such as FTTx rollouts, sales
acceleration, telecom asset management, and IoT device
management. TCS has been successful in identifying some of the
pain points of its telecom customers and develop solution
offerings around them echoing the Ideals of the As-a-Service
economy.
• TCS Thrives On Technology Business Integration: TCS has
successfully integrated technology in its engagements with
HOBS, the cloud-based OSS/BSS solution and leveraged it to
providebusinessprocessasa service (BPaaS) to telcos.
• Wipro Automates Business Processes: Wipro has successfully
deployed automation in various telco engagements and
delivered business benefits of reduced cycle time, process
visibility,and cost reduction.
• CSS Corp Invests in IoT: CSS Corp has started developing its
capabilities and value proposition for its solutions in IoT value
chain. Its thinkingand execution isahead of many of its peers.
Service Provider Profile
Strong	Capabilities/ Mature	Offering		- Presence	of	Offerings	in		majority	sub	categories,	>	$10	million
Developing Capabilities
Yet to	Develop	or	Minimal	<	$1	million
©	2016	HfS	Research	 Ltd. Proprietary	│Page	49Excerpt	 for	Accenture
Accenture
Relevant Acquisitions/Partnerships Key	Clients Global	 Operations	 Centers Proprietary Technologies	 /	Platforms
Acquisitions:
• Acquity	Group	(2013)
• Fjord	(2013)
• i4C	(2014)
• FusionX	 (2015)
Partnerships:
• Alcatel-Lucent/	 Nokia,	Cisco,	 Huawei,	Oracle,	
SAP,	ServiceNow,	Vlocity
Top	50 Telcos as	Clients:	 23
Clients: 30+ telecom	 BPO	 clients	including:
• Dutch	Telco
• Australian	Telco
• European	 Telco
• US	Telco
• Brazilian	Telco
• Danish	Telco
Telecom	 BPO	Headcount	 (In-Scope):	 	
5,000 -6,000	estimated	 by	HfS
Locations: 15+		telecom	BPO	 delivery	center		
locations	 including:	
• North	America:	US
• Europe: Czech	 Republic,	 Poland,	 Slovakia,
• APAC:	Australia,	India,	Philippines
• ROW:	 Argentina,	Brazil
• Accenture	Operations	 Global	Productivity	Hub	
(GPH):	 In-house	 application	 for	productivity	
monitoring	 	and	control
• Accenture	Operations	 App	Exchange:	 In-house	
repository	for	automation
• Accenture	Operations	 App	Explorer:	In-house	
tools	for	analytics
• Accenture	Liquid	 Workforce:	 A	crowdsourcing-
inspired	 platform	 and	initiative
• Accenture	Intelligent	Order	Management	
(IOM):	 Tool	for	order	management	 analytics
Strengths Challenges
• Vision of Digital Telco in As-a-Service Economy : Accenture has developed a
compelling vision and roadmap of how telcos can transfor m to become integrated
digital service providers (IDSPs) t o compete in the digital economy. The Operations
team is working with other Accenture Growt h Platfor ms (Strategy, Digital) in
delivering on the IDSP promise. Accent ure has been investing in and developing
tools and technology for telecom digital operations. It aims to gradually transform
telcos’ business toward digital operations, where an increasing proportion of the
business processes can be delivered as BPaaS. The As-a-Service ideals are integral
to its strategy and offerings.
• Delivery of Services f or All Processes: Accent ure has a depth of client experiences
and capabilities across all telecom operations sub-processes of netw ork,
fulfillment, assurance, and billing. Clients pointed to examples of transformative
solutions in all areas and to a deep bench of skilled delivery resour ces. Customer
references have confirmed that they also benefited fr om automation and analytics
capabilities of Accenture in the last couple of years.
• Analytics and Experience of Delivering Business Outcomes: Accent ure has
demonstrated its strong analytics credentials with a large number of case studies.
Clients pointed to Accenture’s focus on tangible business outcomes such as capex
efficiency, pr ocess efficiency, cost reduction, customer satisfaction, and
compliance in the engagements.
• Quality Of Cust omers: Accenture has one the hig hest number of clients in the
ranks of the top 50 telcos.
• Moving Bey ond Tier 1 Telcos: Accent ure’s strategy is to work wit h
the G2000. Out of its 30+ telco customers, 23 are among top 50
telcos. While the quality of clients is A ccenture’s strengt h, ther e is an
opportunity for Accenture to engage with Tier 2 and Tier 3 telcos wit h
the right value proposition.
• Getting Best Out of Accenture: Refer ence clients have pointed out
that Accent ure’s BPO delivery is sometimes constrained due to IT
issues. If IT is not managed by Accent ure, the BPO team may have t o
do temporary work ar ounds which can impact t he delivery of
business out comes. In the opinion of several clients, it will be
beneficial for both clients and Accenture if both IT and BPO ar e
manag ed by Accenture. The Accenture team can be more proactive
in conveying the value pr oposition of single sour ce IT and BPO t o
stakeholders. This will also help Accent ure to accelerate the
deployment of intelligent automation int o customer engagements as
well as accelerate their As-a-Service strategy.
Business	outcomes–focused	global	service	provider	with	compelling	As-
a-Service	vision	and	a	full	set	of	offerings	in	telecom
Winner’s Circle
Blueprint	Leading	Highlights
• Customer	 Quality	– Number	 of	Top	
50	Telcos	 as	Customer
• Delivery	– All	Processes	 Across	
Value	Chain
• Plans	for	As-a-Service
• Innovation	 - Examples
• Business	 Outcomes	 Measurement
Network
Fulfillment
Assurance
Billing
Wireless
Wireline/ Broadband
Cable
Market Wrap-Up and
Recommendations
©	2016	HfS	Research	 Ltd. Proprietary	│Page	51Excerpt	 for	Accenture
Where to Next for Telecom Operations As-a-Service
n Analytics offerings will evolve from operational analytics to business analytics. Some
service providers already embed analytics in their all engagements. We believe
analytics will become all pervasive for all Tier 1 service providers.
n Intelligent automation and, in particular, robotic process automation (RPA) will become
deeply integrated into telecom business processes reducing the size of current labor
arbitrage–centric contracts.
n Digital telecom which is under 10% of service provider’s revenue will have high growth
and may become 15-20% of service provider’s revenue in next 2-3 years. Service
providers will figure out their value proposition in IoT value chain and support telcos in
capitalizing on the IoT opportunity.
n With automation, omni-channel and self-service initiatives the share of voice channel
will decrease. Subscribers will use voice for complex issues. So while the share of voice
channel will decrease, the average handling time (AHT) will increase and service
providers will require higher quality talent to support it.
n Network rollout management offering by service providers will become extensive. Also,
we will see introduction and maturity of new telecom operations services offerings.
We see the following as the major trends that will foster the future evolution of Telecom
Operations As-a-Service over the next 2–3 years:
©	2016	HfS	Research	 Ltd. Proprietary	│Page	52Excerpt	 for	Accenture
Telecom Operations Will More Extensively Incorporate the
Ideals of the As-a-Service Economy
IDEAL
AS-A-SERVICE
IDEAL	DEFINITION
NONEXISTENT INITIAL EXPANSIVE EXTENSIVE
ALL
PERVASIVE
Write	Off	Legacy
Using	platform-based	solutions,	DevOps	and	API	
ecosystems	for	more	agile,	fewer	exception-
oriented	systems
2016 2019
Design	Thinking
Understanding	the	business	context	to	
reimagine	processes	aligned	with	meeting	client	
needs
2016 2019
Brokers of	
Capability
Orienting	governance to	source	expertise	from	
all	available	sources,	both	internally	and	
externally,	to	address	capability	gaps
2016
2019
Collaborative
Engagement
Ensuring relationships	are	contracted	to	drive	
sustained	expertise	and	defined	outcomes 2016 2019
Intelligent	
Automation
Using automation	and	cognitive	computing	to	
blend	analytics,	talent	and	technology 2016 2019
Accessible	and	
Actionable	Data
Applying	analytics	technologies,	processes	and	
resources	on	relevant	data	sets	to	derive	
insights	that	can	help	improve	an	enterprise
2016 2019
Holistic	Security
Proactively	managing	digital	data	across	service	
chain	of	people,	systems	and	processes 2016 2019
Plug and	Play	
Digital	Business	
Services
Plugging	into	“ready	to	go”	business outcome–
focused,people,	process	and	technology	
solutions	with	security	measures
2016 2019
©	2016	HfS	Research	 Ltd. Proprietary	│Page	53Excerpt	 for	Accenture
2016-17 Recommendations: Buyers
n Increase the Trust Collaboration: Push your service provider(s) to be more collaborative, more visionary, more
inclusive and share with you. In turn, provide that same approach to the service provider(s). Realizing the
business outcomes is easier in a close partnership than in a closed-off zero-sum mindset relationship. So, work
with your service provider(s) in a manner that facilitates long-term success as well and ask forit in return.
n Rethink Your Legacy Stack: OTT players are already eating your lunch. Don’t let legacy technology hold you back
in your transformation for the digital era. Service providers are capable of delivering on new technology stack,
but it is the perception of buyers about the robustness of new technologies and about the capability of service
providers which is holding them back. Ask service providers about case studies of early adopters, develop the
business case and get service providers skin in the game while leveraging new technologies to remain relevant in
the digital era.
n Test Digital and IoT Implications: Building further on the above recommendation, ask your service provider(s)
for insight into how Digital, the IoT and other innovations are likely to impact the telecom business processes
you have in place today whether the service provider delivers them or not. Use quarterly business reviews
(QBRs) and other interactions with your service provider(s) to review their vision for the evolution of telecom
operations.
n Rethink About Captive and Local Outsourcing: Our research shows that only about one-third of potential
telecom operations market is outsourced to large and mid-size service providers. The rest of the potential
market is served by in-house operations, captives or small local service providers. In-house centers and small
local service providers might not have scale and expertise to invest in analytics, automation and other As-a-
Service initiatives. While, most large and mid-size service providers are either investing or have plans to invest in
these initiatives. By leveraging large and mid-size service providers, buyers can get best out of their operations.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	54Excerpt	 for	Accenture
2016-17 Recommendations: Buyers (continued)
n Move Faster and Deeper to As-a-Service Offerings from Service Providers: Keep pushing your service
provider(s) to move to an As-a-Service model that goes beyond labor arbitrage to include and offer you a
broader set of choices for what solutions you adopt and how they interact with your own retained organization.
Don’t settle for a long-term fixed model of solution delivery for telecom operations services, but push your
service provider(s) to be flexible and agile so that future services offerings better align to your own potential
future needs.
n Adopt Design Thinking: Don’t dismiss design thinking as something that is a fad with little benefit for your own
operations. The opportunities to sit down with your service provider(s) to better understand the business
context in which your current processes operate and what can be done to realign or reimagine these processes
to achieve different and/orbetter results is always an exercise worthundertaking.
n Greenfield Service Providers and MVNOs can Leapfrog into As-a-Service: Greenfield service providers and
MVNOs which doesn’t have any legacy constraint and get best out of telecom service providers and use them to
reimagine process,reduce time to market,and make themselves foolproof in As-a-Service Economy.
©	2016	HfS	Research	 Ltd. Proprietary	│Page	55Excerpt	 for	Accenture
2016-17 Recommendations: Service Providers
n Scale-up Innovation: Overall, buyers ratings of service providers were lowest on getting value from service
provider led innovation initiatives. Most buyers feel that service providers can do better at innovation. Few
buyers complain that service providers are becoming complacent and either not reimagining the support
processes with design thinking, technology, analytics, automation or not doing fast enough.
n Move Further to As-a-Service Offering Design and Execution: At HfS, we are strong believers in the rapid
move of BPO away from legacy “lift and shift” models toward an As-a-Service solution design and delivery
world. This is especially true for telecom operations, which has always had some embodiment of the 8 Ideals
of As-a-Service in how service providers have sold and delivered the offering. That said, there is still
significant opportunity to move this further forward and bring a more modular yet end-to-end solution stack
n Prepare for the Rise of the IoT and Digital: They might not be mainstream technologies, but Digital and the
IoT are becoming that way. Research labs, consulting teams and SI units inside each major service provider
are working with clients around these technologies today. However, the lessons learned may not yet have
made their way over to the telecom operations group running day-to-day operations. Put aside investment
funds this year to encourage that collaboration so that as a service provider you can share these same
insights with clients.
n Develop New Service Offerings: Telcos are facing serious threat from OTTs and need all the help they can get
in making themselves relevant in the digital era. Service providers can understand their pain-points and use
design thinking to develop new service offerings which will make telcos competitive and relevant to their
subscribers.
n Move Beyond Tier 1 and English-Speaking Telcos: Most of the telco customers are either tier-one (top 50
telcos) or are from English speaking countries. There are good opportunities with Tier 2 and Tier 3 telcos and
beyond English speaking countries which service providers should also target.
About the Author
©	2016	HfS	Research	 Ltd. Proprietary	│Page	57Excerpt	 for	Accenture
Pareekh Jain
Research	Director,	Bangalore,	India
Overview
• More	than	10	years’	business	experience	in	buy	side,	advisory,	and	
delivery	in	the	global	outsourcing	industry	across	the	US,	Europe,	and	
Asia.
• Coverage	areas	in	HfS	are	telecom	business	operations,	engineering	
services,	and	outsourcing	deals.
• Author	of	the	book	Who	Is	That	Lady?
• A	strategist,	researcher,	and	writer.
Previous	Experience
• Business	Planning	Manager	(Asia	Pacific),	Emerson	Network	Power
• Manager,	Outsourcing	Advisory,	Neo	Group
• Software	Engineer,	Geometric	Global
Education
• MBA,	Indian	Institute	Of		Management	(IIM),	Bangalore,	India
• B.	Tech,	Indian	Institute	Of	Technology	(IIT),	Delhi,	India
pareekh.jain@hfsresearch.com
@pareekhjain
©	2016	HfS	Research	 Ltd. Proprietary	│Page	58Excerpt	 for	Accenture
About HfS Research
HfS	Research is	The	Services	Research	Company™—the	leading	analyst	authority	and	global	community	for	business	
operations	and	IT	services.	The	firm	helps	enterprises	validate	their	global	operating	models	with	world-class	
research	and	peer	networking.
HfS	Research	coined	the	term	The	As-a-Service	Economyto	illustrate	the	challenges	and	opportunities	facing	
enterprises	needing	to	re-architect	their	operations	to	thrive	in	an	age	of	digital	disruption,	while	grappling	with	an	
increasingly	complex	global	business	environment.	HfS	created	the	Eight	Ideals	of	Being	As-a-Service as	a	guiding	
framework	to	help	service	buyers	and	providers	address	these	challenges	and	seize	the	initiative.
With	specific	focus	on	the	digitization	of	business	processes,	intelligent	automation	and	outsourcing,	HfS	has	deep	
industry	expertise	in	healthcare,	life	sciences,	retail,	manufacturing,	energy, utilities,	telecommunications and	
financial	services. HfS	uses	its	groundbreaking	Blueprint	Methodology™	to	evaluate	the	ability	of	service	and	
technology	providers	to	innovate	and	execute	the	Eight	Ideals.
HfS	facilitates	a	thriving	and	dynamic	global	community	of	more	than	100,000	active	subscribers,	which	adds	richness	
to	its	research.	In	addition,	HfS	holds	several	Service	Leaders	Summitsevery	year,	bringing	together	senior	service	
buyers,	providers	and	technology	suppliers	in	an	intimate	forum	to	develop	collective	recommendations	for	the	
industry	and	add	depth	to	the	firm’s	research	publications	and	analyst	offerings.
Now	in	its tenth	year	of	publication,	HfS	Research’s	acclaimed	blog	Horses	for	Sources is	the	most	widely	read	and	
trusted	destination	for	unfettered	collective	insight,	research	and	open	debate	about	sourcing	industry	issues	and	
developments.	Horses	for	Sources	and	the	HfS	network	of	sites	receive	more	than	a	million	web	visits	a	year.
HfS	was	named Analyst	Firm	of	the	Year	for	2016,	alongside	Gartner	and	Forrester,	by	leading	analyst	observer	
InfluencerRelations.

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Accenture hf s-blueprint-report-telecom-operations-as-a-service-excerpt

  • 1. The Services Research Company PareekhJain Research Director Pareekh.Jain@hfsresearch.com HfS Blueprint Report Telecom Operations As-a-Service Excerpt for Accenture May 2016
  • 2. © 2016 HfS Research Ltd. Proprietary │Page 2Excerpt for Accenture TOPIC PAGE Executive Summary 3 Telecom Operations As-a-Service 8 Research Methodology 23 Key Market Dynamics 28 Service Provider Grid 44 Service Provider Profile 48 Market Wrap-Up and Recommendations 50 About the Author 56 Table of Contents
  • 4. © 2016 HfS Research Ltd. Proprietary │Page 4Excerpt for Accenture Introduction to the HfS Blueprint Report: Telecom Operations As-a-Service n The Telecom Operations As-a-Service HfS Blueprint Report is a new look at the evolving market for network, fulfilment, billing and assurance services. This Blueprint builds on the 2014 HfS Telecom Operations Services Blueprint to look in greater detail at the outsourcing of this critical business function for telecom (wireless and wireline) and cable firms and the adoption of the 8 Ideals of As-a-Service delivery in this market as well. n The HfS Blueprint now includes profiles and assessments of eight service providers of Telecom Operations As-a-Service. For the first time, CSS Corp and Aegis are included. n Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentials between service providers across a number of facets in two main categories: innovation and execution. n For this report, HfS has increased the attention paid to innovation criteria in particular and adopted the new 2016 Blueprint Grid layout to assess service providers. This Grid now recognizes up-and-coming service providers (High Potentials) that are scoring higher on innovation criteria than on execution criteria as the providers build these practices. The Grid includes a new group of established, high-execution service providers (Execution Powerhouses) that have built effective delivery operations but need to innovate capabilities and offerings further. They are in addition to the pre-existing rankings for highest overall performance (Winners Circle) and strong combined innovation and execution performance (High Performers).
  • 5. © 2016 HfS Research Ltd. Proprietary │Page 5Excerpt for Accenture HfS Definition: The Telecom Operations Services Value Chain Network Fulfillment Assurance Billing Network Rollout Management Order Management Technical Help Desk Billing Desk Provisioning Incident & Problem Management Pricing Management Activation Field Force Management Billing Management Order Fallout Management Service Level Management Revenue Assurance Source: HfS Research, 2016
  • 6. © 2016 HfS Research Ltd. Proprietary │Page 6Excerpt for Accenture Key Highlights – State of the Telecom Operations As-a- Service Market n An Underpenetrated Market: Our research suggests the potential global telecom operations market (i.e., business processes under network, fulfillment, assurance, and billing) could be as large as $10 Billion, although the current market is perhaps $3.3 Billion. Tier 1 telcos have generally been early adopters of telecom operations services. Now, there is an opportunity to provideservices to Tier 2 and Tier 3 telcos, too. n As-a-Service Solutions Will Drive Growth in Telecom Operations Services: The market size of As-a- Service solutions in telecom operations is presently about $300 Million (9% of the telecom operations market) with the potential to reach $2.5 Billion (25% of the potential telecom operations market). n New Contracts Shows As-a-Service Ideals: We see elements of As-a-Service ideals in new contracts more than in existing contracts. These new contracts are either of new greenfield operators or MVNOs. We see some existing customers moving to As-a-Service ideals when renegotiating deals with a revised scope. n Collaborative Engagements, Analytics, Design Thinking, Automation, Brokers of Capability on the Rise: Compare to our analysis couple of years back, we see the rise in collaborative engagements driving business outcomes. Analytics is now embedded in most of the engagements. Service providers are launching new services incorporating design thinking. We see more examples and use cases of automation. Also, telecom operations service providers are becoming effective brokers of capability by partnering with IT, platforms, local construction companies and telecom domain experts.
  • 7. © 2016 HfS Research Ltd. Proprietary │Page 7Excerpt for Accenture Key Highlights – State of the Telecom Operations As-a- Service Market (continued) n New Services Will Grow Further: Telecom Operations As-a-Service will evolve even faster in the next few years than it has so far. The deployment of IoT solutions, the widespread adoption of network rollout management and other new services leveraging design thinking will lead to significant advances in this offering in thenear term. n Different Solution and As-a-Service Approaches by Telecom Operations Service Providers: The eight service providers we evaluated for this Blueprint approach this market in essentially two ways. Service providers with strong IT offerings focus more on non-voice solutions whereas pure- play BPO service providers focus more on voice-based solutions. Service providers with strong IT offerings have taken the lead in platforms replacing legacy stack, plug and play business solutions, intelligent automation, holistic security, design thinking, and collaborative solutions while analytics and social is on theagenda of all telecom operations service providers.
  • 9. © 2016 HfS Research Ltd. Excerpt for Accenture TOOLS/INFRASTRUCTURE GOVERNANCE Welcome to the As-a-Service Economy HfS uses the word “economy” to emphasize that the emerging next phase of outsourcing is a more flexible, outcome focused way of engaging and managing resources to deliver services. Operating in the As-a-Service Economy means architecting use of increasingly mature operating models, enabling technologies and talent to drive targeted business outcomes. The focus is on value to the consumer. I. THE OPTIMUM OPERATING MODEL Outsourcing | Shared Services GBS | BPaaS/SaaS/IaaS | Crowdsourcing II. EMPOWERING TALENT TO MAKE IT ALL POSSIBLE Capabilities over Skills | Defining Outcomes | Creativity | Data Science IV. TECHNOLOGY TO AUGMENT KNOWLEDGE LABOR Digitization & Robotic Automation | Analytics | Mobility | Social Media | Cognitive Computing III. A BURNING PLATFORM FOR CHANGE Globalization of Labor | High-growth Emerging Markets | Disruptive Business Models | Consumerization AS-A-SERVICE ECONOMY Agility | Collaboration One-to-Many | Outcome Focus Plug-and-Play Services
  • 10. © 2016 HfS Research Ltd. Excerpt for Accenture Fixed Assets Leveraged Assets 2 Design Thinking 3 Brokers of Capability 1 Write Off Legacy 4 Collaborative Engagement 7 Holistic Security 5 Intelligent Automation 6 Accessible and Actionable Data 8 Plug and Play Digital Services SOLUTION Ideals LEGACY ECONOMY AS-A-SERVICE ECONOMYCHANGE MGMT Ideals § Moving into the As-a-Service Economy means changing the nature and focus of engagement between enterprise buyers, service providers and advisors § “As-a-Service” unleashes people talent to drive new value through smarter technology and automation Journey to the As-a-Service Economy
  • 11. © 2016 HfS Research Ltd. Proprietary │Page 11Excerpt for Accenture Telco Pain Points Addressed by Service Providers Leveraging As-a-Service Solutions Pain Points Impact Solutions Competition from the over the top (OTT) players § Revenue reduction § Requirement for opex decrease § Opex reduction through leveraging platforms, plugand play solutions analytics, and automation. Requirements for new 4G/LTE and FTTx rollouts § High capex requirement § Faster time-to-market requirement § Capex efficiency and time-to-market improvement through collaborative engagement, analytics, and automation solutions Customer expectations of superior customer experience and support § High network availability requirement § Customer churn § Customized service requirements § Superior customer support requirement across all channels § Planning leveraging analytics solutions. Reimagining processes leveraging design thinking. Requirements for the rollout of new services § Faster time-to-market requirement § Opex reduction while providing new services for services viability § Developing new services and processes leveragingdesign thinking. § Opex reduction of new services by leveragingplatforms, plugand play solutionsanalytics, and automation. § Telcos can address their biggest pain points leveraging As-a-Service Solutions.
  • 12. © 2016 HfS Research Ltd. Proprietary │Page 12Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Writing Off Legacy Legacy technology and physical distribution investments that limit agility and create exceptions addressed through adding internal and external FTEs Using platform-based solutions, DevOps and API ecosystems for more agile, fewer exception-oriented systems § Writing Off Legacy in Telecom Operations Services As-a-Service is still largely in the “Initial” phase. Though service providers have started building new solutions stacks which can replace legacy telco systems, telcos are hesitant to replace their legacy systems. So service providers are making investments in incremental solutions which are designed to work around or integrate with existing physical and technological investments. Having said that, we are beginning to see examples of some forward-looking telcos which are willing to replace their complete legacy stack. Also, another ray of hope is greenfield operators, MVNOs, and FTTx operators which don’t have legacy investments and are willing to leapfrog to new technology stacks. Example: § TCS has developed HOBS, a cloud-based OSS/ BSS solution. TCS partnered with a Norwegian Telecom operator for their legacy modernization and transformation initiative that entailed replacement of the entire divergent legacy systems into one single HOBS platform leading to simplification product rationalization and IT transformation. As part of the unique commercial model, TCS committed to a 36 % Opex reduction.
  • 13. © 2016 HfS Research Ltd. Proprietary │Page 13Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operation Services: Design Thinking Resolving problems by looking first at the process as the source of the solution Understanding the business context to reimagine processes aligned with meeting client needs § Leading telcos and telecom operations service providers are using Design Thinking approaches (they do not always call these methodologies design thinking) to reimagine telecom processes, systems and services so that they effectively respond to business challenges. Design thinking is actually quite “Expansive” in its penetration of Telecom Operations As-a-Serviceeven if that isn’t formally recognized today. Examples: § Infosys has put design thinking at the heart of the company’s strategy for developing solutions and managing client relationships. HfS is starting to see evidence of design thinking approaches being brought to telecom engagements. § TCS Telecom BPS uses design thinking to create solutions for the telecom industry. The approach starts with understanding the telecom consumer landscape, the CSP landscape, their pain points and their strategic imperatives and providing end-to-end solutions that resonate with these landscapes. In the last couple of years, TCS has introduced a number of new services for telecom customers such as FTTx rollouts, sales acceleration, telecom asset management, and IoT device management. TCS has been successful in identifying some of the pain points of its telecom customers and develop solution offeringsaround them. § Accenture provides an example of design thinking where it reimagined the process of customer support to high- value segment and implemented a technical solution that connected customers in the high-value segment to higher-rankedagents in real-time. This resulted in increased CSATscores.
  • 14. © 2016 HfS Research Ltd. Proprietary │Page 14Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Brokers of Capability Focusing governance and operations staff on managing to the letter of the contract and the decimal points of service levels Orienting governance to source expertise from all available sources, both internally and externally, to address capability gaps § Brokers of capability is the ability of a service provider to source expertise from all available sources, both externally and internally to address client requirements. It helps service providers to identify current and anticipated needs to deliver business results and to manage capability effectively to deliver those outcomes. Telecom operations service providers work with the variety of players in the ecosystem – consulting firms, IT services firms, telecom experts, field partners, construction companies, etc. We see this Ideal as “Extensively” available in today’smarket. Examples: § TCS provides clients with a wide breadth of expertise in support of the telecom operations. TCS has partnerships with local field and construction companies in different geographies and it leverages them to provide total network rollout solutions to telcos. It also brings the telecom domain expertise of telecom companies of Tata Group and offers them on demand in its engagements. Finally, TCS also uses its expertise in IT services, Network services and telecom platformsin delivering a total solution to telcos. § Accenture has developed a structured platform-led crowdsourcing approach for tapping external and internal capabilities on demand for its engagement (Accenture Liquid Workforce). Accenture has developed a compelling vision and roadmap of how telcos can transform to become integrated digital service providers (IDSPs) to compete in the digital economy. The Operations team is working with other Accenture Growth Platforms (Strategy, Digital) in delivering on the IDSPpromise. § Other broad-based service providers such as Tech Mahindra, Wipro, Infosys also leverage capabilities in IT and BPO in telecom engagements.
  • 15. © 2016 HfS Research Ltd. Proprietary │Page 15Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Collaborative Engagement § The key to a sustainable outsourcing engagement is collaboration. Traditionally, business process outsourcing work has been directive from service buyers to service providers and managed strictly by procurement organizations. As telcos are facing the threat of survival in the digital world, they are leveraging telecom operations service providers more strategically. HfS is seeing a move over time to more collaboration engagement where trust and experience are in place, often through shared outcomes and results. The adoption of practices of collaborative engagement is “Expansive” in Telecom Operations today. Examples: § TCS employs a three-level model of collaborative engagement with strategic discussions at the senior management level, the tactical collaboration between operational managers (supported by a Customer Engagement Portal) and operational reviews at the day-to-day level. This coupled with its ValueBPS™ approach, which aligns telcos’ strategic objectives with key business metrics, TCS delivers on strategic business outcomes such as telecom revenue and margin metrics, NPS,time to market, opex and capex reduction, etc. § Accenture contracts and manages its telecom engagements with the focus on governance, business outcomes and co-innovation. It has a three-layer approach to governance ensuring tactical, operational and strategic issues and opportunities with a near-, mid-and long-term focus are proactively managed. Clients pointed to tangible business outcomes such as capex efficiency, process efficiency, cost reduction, customer satisfaction, delivered by Accenture. Evaluating relationships on baselines of cost, effort and labor Ensuring relationships are contracted to drive sustained expertise and outcomes
  • 16. © 2016 HfS Research Ltd. Proprietary │Page 16Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Intelligent Automation Operating fragmented processes across multiple technologies with significant manual interventions Using of automation and cognitive computing to blend analytics, talent and technology § Intelligent Automation leveraging RPA, autonomics, cognitive and analytics is gaining the interest of telcos. Most of the early automation case studies in telco business process delivery came from either order management or customer support. We have lately observed automation examples in other telco processes such as network design, billing audits, field force management, incident and problem management. Almost all service providers are now offering automation solutions either on their own platforms or leveraging third party solutions. The adoption of intelligent automation is “Expansive” in Telecom Operations today. Examples: § Wipro has a comprehensive approach to intelligent automation in telecom operations combing automation and analytics. Wipro calls it Cognitive RPA which combines the power of analytics with robotic automation and can deliver a combined improvement of cycle times by higher than 25%, additional operational cost reduction by 35% over the traditional approach. Wipro has successfully leverage intelligent automation in several telco engagements. § Accenture Operations is committed to bringing higher levels of automation to all of its engagements. Last year the total impact of all automation solutions was a 14 percent productivity improvement. In telecom operations, Accenture’s automation initiatives cover complete value chain including network, fulfillment, assurance and billing.
  • 17. © 2016 HfS Research Ltd. Proprietary │Page 17Excerpt for Accenture AUTOMATION • Service Desk and Web Chat Automation: Increasing productivity of L1 support with automated tools. The use of robots to answer simple queries and repetitive questions. • Field Force Automation: Enabling field technicians to work effectively by automating some of their processes and providing technical and operational expertise on demand. Using Google Glass to automate video transfer of network repair and automate ticket closure. Using automation to reduce false or ghost tickets, thus reducing the mean time to repair. • Network Drawing Automation: Reducing network drawing time by automating network diagram production and analysis process. • Order Management and Provisioning Automation: Performing automatic quality checks in order management and provisioning processes, thus saving activation time. • Billing Automation: Automating the majority of audit checks in the billing process, thus reducing FTE effort and AHT. • Automated Self-Care: Automated technical scan for subscribers, to identify issues that could impede service performance. • Application Automation: Provide a unified or single screen/source of information to agents by eliminating switching from screen to screen. Provide a unified application to the workforce in the field by integrating other applications for the workforce in the field. Automation Examples in Telecom Operations As-a-Service
  • 18. © 2016 HfS Research Ltd. Proprietary │Page 18Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Accessible and Actionable Data Performing ad-hoc analysis on unstructured data with little integration or business context Applying analytics technologies, processes and resources to relevant data sets to derive insights that can help improve an enterprise § Taking advantage of Accessible and Actionable Data is at the very heart of Telecom As-a-Service operations. Telcos were the early adopter for actionable analytics when they started leveraging analytics to reduce customer churn. Now analytics is leveraged across all telecom processes including network, fulfillment, assurance, and billing for deriving insights and that either the service provider and/or the telco can act upon to improve the business. This Ideal is “Extensive” in its application within the current Telecom Operations Services As-a-Service market. Examples: § Accenture has embedded analytics in 100% of telecom operations engagements. Accenture combines financial, business/operations, network and customer analytics in a holistic way. Accenture’s analytics team has developed analytics apps for telecom operations e.g. Incident Management, Ticket Triage and Intelligent Order Management. These appsare customizable per client requirement and reduce time to generate insights. § TCS has comprehensive analytics offerings and offers analytic solutions across the telecom value chain to help telcos increase sales, decrease operational cost, reduce churn and fraud, and improve risk management. TCS also has filed two patents fortelecom analytics frameworkrecently.
  • 19. © 2016 HfS Research Ltd. Proprietary │Page 19Excerpt for Accenture ANALYTICS • Churn Analytics: Analyze and predict potential churn. For example: early attrition analysis, impact of field dispatches on customer churn, impact of customer interactions (frequency and mode) on customer churn, impact of subscriber demographics on customer churn, impact of usage on customer churn, suggesting NBA (next best actions), campaign analytics. • Real-time Interaction Analytics: Assessment of positive and negative interaction in the first few seconds of the call, which provides the opportunity to intervene and change the course. • Billing Analytics: Revenue enhancement through analytics of unbilled orders. Circuit inventory analytics. Impact of subscriber demographics on customer billing. • Order Analytics: Order backlog analytics. Order fallout analytics to plug revenue leaks. • Network and Assurance Analytics: Network capacity analytics for optimum usage. Predictive network analytics. Financial analytics for selecting optimum network maintenance and augmentation plans. • Performance Analytics: Analytics for improving first-time-right ratio. Analyze and report performance according to service level agreements. • Regulatory and Fraud Analytics: Carry out regulatory support and fraud analytics for any inflated usage charges. • Contract Analytics: Conduct contract innovation based on usage and costing analytics in different geographic or product segments. Analytics in Telecom Operations As-a-Service
  • 20. © 2016 HfS Research Ltd. Proprietary │Page 20Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Holistic Security Responding reactively with post-event fixes. Little focus on end-to-end process value chains Proactively managing digital data across service chain of people, systems and processes § Holistic Security is a critical element in telecom operations as telecom operations are highways on which enterprise and customer data flows. However, it is handled by the separate specialized group which is often part of IT or network practices. From BPO service providers, we don’t hear much about holistic security. We believe security services should be part of the total solution and aligned to BPO or operations group too. In IoT world, the data will explode and telecom operations group will be the critical part of delivering holistic security solutions to telcos. We are observing that a couple of service providers are beginning to align their security practices with operations group and this trend will become extensive over time. Example: § Accenture has 360° approach addresses spectrum of security across people, processes, technology. Accenture’s Security practice is part of Accenture Operations. The core value proposition for combining security with operations team is collaborations. This is true both within the security team and through the locational synergy with Accenture’s existing cloud, analytics, automation, and operations staff already located in Bangalore. We’re hopeful this collaboration will result in a greater level of system awareness by all parties, and potential decrease the time to plan foror respond to cyber threats. § CSS Corp is a niche service provider offering network and assurance services to telecom customers. Along with this, it also has enterprise security practice which is aligned with assurance or tech support practice. As they are developing tech support solution for IoT they are also aligning them with security solutions for potential threats of cyber crime in IoT.
  • 21. © 2016 HfS Research Ltd. Proprietary │Page 21Excerpt for Accenture How As-a-Service Is Taking Shape in Telecom Operations Services: Plug and Play Digital Business Services Undertaking complex and often painful technology transitions to reach a steady state Plugging into “ready to go” business outcome–focused, people, process and technology with security measures § Telecom operations service providers have started partnering with clients in developing and deploying Plug and Play Digital Business Services. As telcos are hesitant to replace their legacy systems, service providers are making investments in incremental solutions which are designed to work around or integrate with existing physical and technological investments. Typically, they have taken the form of point solutions for order management, billing management, problem or incident management, contact center, social media, revenue assurance, analytics, etc. We see these solutions as being at the “Expansive” stage of development with significant progress forecasted over the next few years as telcos become more comfortable with these solutions. Example: § Tech Mahindra has developed an in-house Carexa platform which consists of in-house tools such as OrderVu, OrderFix, Socio, Tecnico, and Uno and also third party tools. Tech Mahindra offers business process as a service (BPaaS) to the telcos on Carexa platforms. OrderFix is a cloud-based order orchestration platform, OrderVu helps plug revenue leakage, Socio helps in social media support, Tecnico helps in remote technical support, and Uno is automation. § The TCS platform components are built with a modular design instead of monolithic applications. Taking systems based approach platform solutions cater to entire processes rather than just point applications. This enables customers to “pick-and-choose” services and applications from platform portfolio. TCS has integrated its differentpoint solutions with its flagship OSS/BSSsolutionHOBS.
  • 22. © 2016 HfS Research Ltd. Proprietary │Page 22Excerpt for Accenture PLUG & PLAY PLATFORMS • Service Assurance: A cloud-based platform for incident management that drives significant savings and shortens time to repair by ensuring tickets are solved at the first instance. • Provisioning Services: A cloud-based provisioning and porting platform that provides automated port-in number porting between different carriers. • Order Management: A cloud-based platform for orchestrating and optimizing the order to activation process. It provides visibility into the complete order management process. • Social Media Command Center: A cloud-based platform for providing social media support and data- based customer engagement. • Order Fallout Management: A cloud-based platform for predicting potential order fallouts and proactively fixing them. • Revenue Assurance: A cloud-based platform for detecting, probing and correcting revenue leakage. • Remote Technical Support: A cloud-based platform for providing billable remote technical support to customers. • OSS/BSS Solution: A cloud-based platform with pre-built eTOM aligned telecom processes. Plug & Play Business Solutions in Telecom Operations As-a-Service
  • 24. © 2016 HfS Research Ltd. Proprietary │Page 24Excerpt for Accenture Blueprint Research Methodology Data Summary n Data was collected in Q1 2016 and Q2 2016, covering buyers, providers and advisors/influencers of Telecom Operations Services. n More than 500 data points were collected, covering 8 major service providers. Participating Service Providers This Report Is Based On: n Tales from the Trenches: Interviews were conducted with buyers who have evaluated service providers and experienced the services. Some were supplied by service providers, but many interviews were conducted by HfS Executive Council members and participants in our extensive market research. n Sell-Side Executive Briefings: Structured discussions with service providers were intended to collect data necessary to evaluate innovation, execution and market share, and deal counts. n Publicly Available Information: Financial data, website information, presentations given by senior executives and other marketing collateral were evaluated.
  • 25. © 2016 HfS Research Ltd. Proprietary │Page 25Excerpt for Accenture HfS Telecom Operations As-a-Service Blueprint Scoring Percentage Breakdown EXECUTION 100.00% 1. Quality of Customer Relationships 14.00% 2. Quality of Customers 10.00% 3. Solution & Delivery Capabilities 30.00% 4. Geographic Spread & Scale 16.00% 5. Pricing & Commercial Models 20.00% 6. Applicability to DifferentSegments 10.00% INNOVATION 100.00% 1. Strategy, Innovation & Investments 20.00% 2 Technology, Tools 12.00% 3. BusinessOutcomes Measurement 12.00% 4. Continuous Improvement 10.00% 5. Plans for As-a-Service 16.00% 6. Business fromemerging areas (SMAC, Automation, IoT) 28.00% TOTAL 200.00%
  • 26. © 2016 HfS Research Ltd. Proprietary │Page 26Excerpt for Accenture Execution Criteria Definitions EXECUTION How well does the service provider execute on its contractual agreement,and how well does the provider manage the client/provider relationship? Quality Of Service Provider’s Customer Relationship How engaged is the executive and management team in defining and managing the delivery of business services? What is the scale and duration of customer engagements? Quality Of Customers How is the quality of service providers customers? How many of the top 50 telcos are convinced of service providers capabilities? Delivering Actual Services What are the clients’ and market’s overall impression of the quality of service across the value chain from this service provider? How deep is the telecom domain expertise (talent and solutions) in understanding and then addressing issues? Is the delivery capability widespread across different delivery channels? GeographicFootprint And Scale How does this service provider use a global delivery footprint to meet clients’ needs? Does service provider have scale to make investments in the delivery? Pricing And Commercial Models How flexible are providers when determining pricing of contracts? How does their pricing mix compares with the industry? Is there an active effort on the part of the service provider to create value year on year beyond the contract commitments? Applicability To DifferentSegments How deep is the expertise in delivering solutions across different segments – wireless, wireline and cable? How does their customer mix compares with the industry?
  • 27. © 2016 HfS Research Ltd. Proprietary │Page 27Excerpt for Accenture Innovation Criteria Definitions INNOVATION How well does the service provider innovate its offering(s) in response to market demand, client requirementsand its own vision for how the telecom operations market will evolve? Vision,Innovation And Investments What is the service provider’s vision for the evolution of telecom operations services? Is there a clear strategy for delivering telecom operations and are there identifiable investments in place to realize this strategy today? Do customers rate them as innovative? Are there examples of innovation in engagements shared by customers and service providers? Is the service provider able to leverage acquisition and partnerships in meeting clients’ specific and varied talent and technology requirements over time? Application And Platform Strategy For Supply Chain Management Services What is the role of applications and platforms in the service provider’s offering strategy? Are the selected platforms developed in-house, or are they provided by third parties? Is there a demonstrable intent to maintain and enhance the in-house platforms? Business Outcomes Measurement Clear understanding of what business outcomes exist for telecom customers and how the service provider will deliver these business outcomes using collaborative engagements. Continuous Improvement How well does the provider execute on improving business process and capabilities of their solutions? How has the service provider taken feedback and incorporated it into the solution and delivery? Plans For As-a-Service Does the provider have a vision for how the As-a-Service Economy is developing and how they need to respond as a service provider to these changes both in terms of specific capabilities and in their commercial and operating approach? Business from Emerging Areas – Digital & IoT How are service providers looking at emerging areas. Do they have plans to leverage these emerging areas and integrate them into their solutions. Examples include: Digital and IoT.
  • 29. © 2016 HfS Research Ltd. Proprietary │Page 29Excerpt for Accenture The Telecom Operations Services Value Chain Network Fulfillment Assurance Billing Network Rollout Management Order Management Technical Help Desk Billing Desk Provisioning Incident & Problem Management Pricing Management Activation Field Force Management Billing Management Order Fallout Management Service Level Management Revenue Assurance Source: HfS Research 2016
  • 30. © 2016 HfS Research Ltd. Proprietary │Page 30Excerpt for Accenture Description of Telecom Operations Processes & Sub processes Process Sub-processes Network: The Network process is responsible for building and maintainingphysical network across coverage area for providing telecom and cable services. Network Rollout Management: This involves design and project management of green field or brown field telecom network rollouts. The telecom networks can be wireless, broadband, or cable. Fulfillment: The Fulfillment process is responsible for providing customers with their requested telecom products and services in a timely and correct manner. This process informs the customers of the status of their purchase order, ensures completion on time, as well as ensuring a delighted customer. Order Management:This sub-process is responsible for accepting and issuing customer orders including checks on credit worthiness, order inquiries, order status and tracking. It also involves complex order orchestration with multiple dependencies. Activation: The sub-process for service activation for customers to ensure first time right and that customers receive stable and noiseless service. Provisioning: Provisioning is a sub-process of preparing and equipping a network to allow it to provide new services to its customers. It involves designing and assigning service configurations and network components. Order Fallout Management:Order falloutoccurs when an order fails during processing. Order fallout is often called order failure.Fallout managementis the process to resolve fallout and allow an order to continue processing.It also involves the use of analytics in reporting and reducing order failure rate.
  • 31. © 2016 HfS Research Ltd. Proprietary │Page 31Excerpt for Accenture Description of Telecom Operations Processes & Sub processes Process Sub-processes Assurance: These processes are responsible for the execution of proactive and reactive maintenance activities to ensure that services provided to customers are continuously available and to SLA or QoS performance levels. It involves management of issues related to customer services and to ensure minimum impact. Technical Helpdesk: Integrated Help Desk or Service Desk (L1) with the technically skilled workforce which are able to close tickets. Incident Management: The sub-process to ensure tickets are solved at right instance. It also includes triage and analytics to reduce cost and mean time to repair. Problem Management:Thesub-process to perform root-cause analytics and manage the lifecycle of problems with the objective of prevention, eliminating recurring incidents, and minimizing the impact of incidents that can’t be prevented. Field Force Management:The sub-process to support Field Force manage their tasks efficiently, effectively and with customers satisfaction by providing them expertise and insight on technical and operational issues. It involves capacity planning, forecasting, scheduling, optimization, dispatch and spare parts management, etc. Service Level Management:Manage and report carrier performance by gathering, validating and assessing data reflecting the performance of carriers in line with established service levels. Billing: These processes are responsible for the production of timely and accurate bills, for providing pre-bill use information and billing to customers, for processing their payments, and performing payment collections. It also involves doing revenue and billing analytics and prevent fraud and revenue leakage. Billing Helpdesk: It handles customer inquiries about bills, provides billing inquiry status and is responsible for resolving billing problems to the customer’s satisfaction in a timely manner. Billing Management:A sub-process for producing timely and accurate bills by performing all checks. It also involves validation of invoices from the supplier and/or partners to ensure they have the correct billing and invoicing details, and identify any disputes. Pricing Management:Manage the costing database and quotes. Support with pricing data and analytics in enterprise pre-sales and carrier contract negotiations. Revenue Assurance: Carry out regulatory support and fraud analytics. Maintain the data format in line with regulatory guidelines. Analytics to prevent fraud for any pumped usage charges with partners or any loss due to under-billing or under-reporting of circuit inventory.
  • 32. © 2016 HfS Research Ltd. Proprietary │Page 32Excerpt for Accenture Telecom Operations Is Beginning to Incorporate the Ideals of the As-a-Service Economy IDEAL AS-A-SERVICE IDEAL DEFINITION NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALL PERVASIVE Write Off Legacy Using platform-based solutions, DevOps and API ecosystems for more agile, fewer exception- oriented systems 2016 Design Thinking Understanding the business context to reimagine processes aligned with meeting client needs 2016 Brokers of Capability Orienting governance to source expertise from all available sources, both internally and externally, to address capability gaps 2016 Collaborative Engagement Ensuring relationships are contracted to drive sustained expertise and defined outcomes 2016 Intelligent Automation Using automation and cognitive computing to blend analytics, talent and technology 2016 Accessible and Actionable Data Applying analytics technologies, processes and resources on relevant data sets to derive insights that can help improve an enterprise 2016 Holistic Security Proactively managing digital data across service chain of people, systems and processes 2016 Plug and Play Digital Business Services Plugging into “ready to go” business outcome– focused,people, process and technology solutions with security measures 2016
  • 33. © 2016 HfS Research Ltd. Proprietary │Page 33Excerpt for Accenture Multi-Dimension Analysis* of Telecom Operations Services Customers Geography Service Offerings Telecom Operations Services Training Customer Relationships Customer Quality * Based on participating service provider’s data Pricing Onshore vs. Offshore
  • 34. © 2016 HfS Research Ltd. Proprietary │Page 34Excerpt for Accenture Current Services Spread in Telecom Operations Services TELECOM OPERATIONS SERVICES SEGMENTATION Assurance is the leading service accounting for about half of the revenue followed by fulfilment and billing. Network services are at an early stage of evolution and service providers are developing capabilities. Source: HfS Research, 2016 Assurance 45% Fulfillment 31% Billing 15% Network 9% Assurance Fulfillment Billing Network TELECOM OPERATIONS SERVICES REVENUE BREAKUP BY SERVICES
  • 35. © 2016 HfS Research Ltd. Proprietary │Page 35Excerpt for Accenture Current Customer Segmentation in Telecom Operations Services TELECOM OPERATIONS CUSTOMER SEGMENTATION Wireless is the leading customer segment followed by wireline and cable companies. According to service providers, market growth is coming from different emerging areas in all segments. • Wireless: MVNO, Greenfield operators, LTE/4G rollouts • Wireless: Broadband/ Fiber rollouts • Cable: Content Digitization TELECOM OPERATIONS SERVICES REVENUE BREAKUP BY CUSTOMER SEGMENTS Source: HfS Research, 2016 Wireless 47% Wireline 38% Cable 15% Wireless Wireline Cable
  • 36. © 2016 HfS Research Ltd. Proprietary │Page 36Excerpt for Accenture Current Delivery Channel Spread in Telecom Operations Services TELECOM OPERATIONS CHANNEL SEGMENTATION Voice is the dominant channel segment followed by data and analytics. According to service providers, share of voice is coming down and share of data and analytics is growing. Though share of voice is coming down the quality, talent requirements are going up. Also AHT is going up as now subscribers have self serving option for many problems and they call mostly for complex problems. TELECOM OPERATIONS SERVICES REVENUE BREAKUP BY DELIVERY CHANNELS Source: HfS Research, 2016 Voice 60% Data 35% Analytics 5% Voice Data Analytics
  • 37. © 2016 HfS Research Ltd. Proprietary │Page 37Excerpt for Accenture Current Geographical Spread in Telecom Operations Services TELECOM OPERATIONS GEOGRAPHICAL SEGMENTATION Asia Pacific & ROW is the largest market for leading service providers. According to service providers Europe, Asia-Pacific & ROW have more growth potential than North America. TELECOM OPERATIONS SERVICES REVENUE BREAKUP BY GEOGRAPHY Asia-Pacific & ROW 55%Europe 24% North America 21% Source: HfS Research, 2016
  • 38. © 2016 HfS Research Ltd. Proprietary │Page 38Excerpt for Accenture Current Pricing Models Deployed in Telecom Operations Services TELECOM OPERATIONS SERVICES REVENUE BREAKUP BY PRICING MODELS Source: HfS Research, 2016 Time & Material 40% Fixed Price 30% Transaction Based 25% Gain Share 5% PRICING FOR TELECOM OPERATIONS SERVICES • The pricing in telecom operations services is predominantly time and material (T&M) and fixed prices • HfS’ discussions with both buyers and service providers have indicated a growing demand for more transaction based and gain-share based pricing models.
  • 39. © 2016 HfS Research Ltd. Proprietary │Page 39Excerpt for Accenture Current Onshore/ Nearshore/ Offshore Split in Telecom Operations Services GEOGRAPHIC SPLIT IN TELECOM OPERATIONS SERVICES • More than 90% of the telecom operations service headcount is either offshore or onshore. • According to service providers the onshore headcount is growing faster. TELECOM OPERATIONS SERVICES HEADCOUNT BREAKUP Source: HfS Research, 2016 Offshore 56%Onshore 38% Nearshore 6%
  • 40. © 2016 HfS Research Ltd. Proprietary │Page 40Excerpt for Accenture Investment in Training Hours/ FTE TRAINING HOURS/FTE • Telecom operations service providers spend about 80 hours/ FTE/ year on telecom specific training on average. Assuming average 2000 hours/ year this will be about 4% of the working hours. • There is a large variation among service providers in training hours from 25 hour/FTE/year to 300 hours/ FTE/year. WORKING HOURS/FTE BREAKUP Source: HfS Research, 2016 Other 94% Training Hours 4%
  • 41. © 2016 HfS Research Ltd. Proprietary │Page 41Excerpt for Accenture Customer Relationships: Percentage of Customers With $5M+ ACV CustomersWith $5 Million + ACV • Telecom operations service providers have on average 40% of their customers accounts with $5 million+ ACV. • There is a large variation among service providers in $5 million+ ACV accounts from 25% to 75% in percentage. TELECOM OPERATIONS SERVICESCUSTOMERS BREAKUP BY ACV Source: HfS Research, 2016 Other 60% $5 Million+ ACV 40%
  • 42. © 2016 HfS Research Ltd. Proprietary │Page 42Excerpt for Accenture Customer Relationships: Percentage of Customers With 5 Years+ Relationship CustomersWith 5 Years+ Relationship • Telecom operations service providers have on average 46% of their customers accounts with 5 years+ relationship. • The variation among service providers in 5 years+ accounts is from 33% to 53% in percentage. TELECOM OPERATIONS SERVICES CUSTOMERS BREAKUP BY RELATIONSHIP YEARS Source: HfS Research, 2016 Other 54% 5 Years+ Relationship 46%
  • 43. © 2016 HfS Research Ltd. Proprietary │Page 43Excerpt for Accenture Customer Quality: Percentage of Customers In Top 50 Telcos CustomersIn Top 50 Telcos • Telecom operations service providers have on average 43% of their customers accounts among top 50 telcos. • There is a large variation among service providers for top 50 telcos as customers. It varies from 12% to 75% in percentage. TELECOM OPERATIONS SERVICES CUSTOMERS BREAKUP BY TOP 50 TELCOS Source: HfS Research 2016 Other 57% Top 50 Telcos 43%
  • 45. © 2016 HfS Research Ltd. Proprietary │Page 45Excerpt for Accenture To distinguish service providers that show competitive differentiation in a particular line of delivery with progress in realizing the “As-a-Service Economy” of business outcome-oriented, on-demand, talent + technology services, HfS awards these providers the “As-a-Service Winners Circle” designation. Guide to the Blueprint Grid EXECUTION INNOVATION As-a-Service Winners Circle show excellence recognized by clients in the 8 Ideals in execution and innovation Collaborative relationships with clients, services executed with a combination of talent and technology as appropriate, and flexible arrangements. Articulate vision and a “new way of thinking,” have recognizable investments in future capabilities and strong client feedback and are driving new insights and models. High Performers demonstrate strong capabilities yet lack an innovative vision or momentum in executing the vision Execute some of the following areas with excellence: worthwhile relationships with clients, services executed with “green lights” and flexibility when meeting clients’ needs. Typically, describe a vision and plans to invest in future capabilities and partnerships for As-a-Service, and illustrate an ability to leverage digital technologies and/or develop new insights with clients. High Potentials demonstrate vision and strategy but have yet to gain momentum in executing them Early results and proof points from examples in new service areas or innovative service models, yet lack scale, broad impact and momentum in the capability under review. Well-plotted strategy and thought leadership, showcased use of newer technologies and/or roadmap and talent development plans. Execution Powerhouses demonstrate solid, reliable execution, but have yet to show significant innovation or vision Evidence of operational excellence; however, still more of a directive engagement between service provider and its clients. Lack of evident vision and investment in future-oriented capability, such as skills development, “intelligent operations” or digital technologies.
  • 46. © 2016 HfS Research Ltd. Proprietary │Page 46Excerpt for Accenture INNOVATION EXECUTION Excellent at Innovation and ExecutionInvesting in Innovation to Change Building All Capabilities Execution Is Ahead of Innovation AS-A-SERVICE WINNER’S CIRCLE EXECUTION POWERHOUSES HIGH POTENTIALS HIGH PERFORMERS HfS Blueprint Grid: Telecom Operations As-a-Service Accenture TCS Aegis CSS Corp Firstsource Infosys Wipro Tech Mahindra
  • 47. © 2016 HfS Research Ltd. Proprietary │Page 47Excerpt for Accenture Major Service Provider Dynamics: Highlights EXECUTION • Infosys Delivers and Manages Attrition: Reference clients were particularly happy and praise Infosys’ delivery and attrition management in the engagements. In one particular engagement, Infosyshas retained key delivery personnel for the last ten years and helped them grow and provide value to the client withoutdisruption. • Tech Mahindra Has Extensive Geographic Footprint in Emerging Markets: Tech Mahindra started its African operations in 2011 and now has a delivery footprint in five African countries with about 2,000. This local presence gives confidenceto local and regional telcos to outsource. • Aegis Has Competitive Pricing: Customer references were very satisfied with Aegis’ pricing, which they say is very competitive in comparison to other service providers partially as Aegis delivers from Tier 2 and Tier 3 cities in India. • TCS Grows Fast: TCS has one the highest growth rates in the last two years among service providers evaluated for this study. As a consequence, TCS has one of the largest number of telecom customers among its peer group. This shows the strength of value proposition of TCS to both new and existingcustomers. • Accenture Leverages its Quality Of Customers: Accenture has one the highest number of clients in the ranks of the top 50 telcos. INNOVATION • Accenture Has Compelling Vision of Digital Telco in As-a- Service Economy: Accenture has developed a compelling vision and roadmap of how telcos can transform to become integrated digital service providers (IDSP) to compete in the digital economy. The Operations team is working with other Accenture Growth Platforms to deliver on the IDSP promise. The As-a- Service Ideals areintegral to its strategy and offerings. • TCS Has Introduced New Offerings For As-a-Service Economy: In the last couple of years TCS has introduced a number of new services for telecom customers such as FTTx rollouts, sales acceleration, telecom asset management, and IoT device management. TCS has been successful in identifying some of the pain points of its telecom customers and develop solution offerings around them echoing the Ideals of the As-a-Service economy. • TCS Thrives On Technology Business Integration: TCS has successfully integrated technology in its engagements with HOBS, the cloud-based OSS/BSS solution and leveraged it to providebusinessprocessasa service (BPaaS) to telcos. • Wipro Automates Business Processes: Wipro has successfully deployed automation in various telco engagements and delivered business benefits of reduced cycle time, process visibility,and cost reduction. • CSS Corp Invests in IoT: CSS Corp has started developing its capabilities and value proposition for its solutions in IoT value chain. Its thinkingand execution isahead of many of its peers.
  • 48. Service Provider Profile Strong Capabilities/ Mature Offering - Presence of Offerings in majority sub categories, > $10 million Developing Capabilities Yet to Develop or Minimal < $1 million
  • 49. © 2016 HfS Research Ltd. Proprietary │Page 49Excerpt for Accenture Accenture Relevant Acquisitions/Partnerships Key Clients Global Operations Centers Proprietary Technologies / Platforms Acquisitions: • Acquity Group (2013) • Fjord (2013) • i4C (2014) • FusionX (2015) Partnerships: • Alcatel-Lucent/ Nokia, Cisco, Huawei, Oracle, SAP, ServiceNow, Vlocity Top 50 Telcos as Clients: 23 Clients: 30+ telecom BPO clients including: • Dutch Telco • Australian Telco • European Telco • US Telco • Brazilian Telco • Danish Telco Telecom BPO Headcount (In-Scope): 5,000 -6,000 estimated by HfS Locations: 15+ telecom BPO delivery center locations including: • North America: US • Europe: Czech Republic, Poland, Slovakia, • APAC: Australia, India, Philippines • ROW: Argentina, Brazil • Accenture Operations Global Productivity Hub (GPH): In-house application for productivity monitoring and control • Accenture Operations App Exchange: In-house repository for automation • Accenture Operations App Explorer: In-house tools for analytics • Accenture Liquid Workforce: A crowdsourcing- inspired platform and initiative • Accenture Intelligent Order Management (IOM): Tool for order management analytics Strengths Challenges • Vision of Digital Telco in As-a-Service Economy : Accenture has developed a compelling vision and roadmap of how telcos can transfor m to become integrated digital service providers (IDSPs) t o compete in the digital economy. The Operations team is working with other Accenture Growt h Platfor ms (Strategy, Digital) in delivering on the IDSP promise. Accent ure has been investing in and developing tools and technology for telecom digital operations. It aims to gradually transform telcos’ business toward digital operations, where an increasing proportion of the business processes can be delivered as BPaaS. The As-a-Service ideals are integral to its strategy and offerings. • Delivery of Services f or All Processes: Accent ure has a depth of client experiences and capabilities across all telecom operations sub-processes of netw ork, fulfillment, assurance, and billing. Clients pointed to examples of transformative solutions in all areas and to a deep bench of skilled delivery resour ces. Customer references have confirmed that they also benefited fr om automation and analytics capabilities of Accenture in the last couple of years. • Analytics and Experience of Delivering Business Outcomes: Accent ure has demonstrated its strong analytics credentials with a large number of case studies. Clients pointed to Accenture’s focus on tangible business outcomes such as capex efficiency, pr ocess efficiency, cost reduction, customer satisfaction, and compliance in the engagements. • Quality Of Cust omers: Accenture has one the hig hest number of clients in the ranks of the top 50 telcos. • Moving Bey ond Tier 1 Telcos: Accent ure’s strategy is to work wit h the G2000. Out of its 30+ telco customers, 23 are among top 50 telcos. While the quality of clients is A ccenture’s strengt h, ther e is an opportunity for Accenture to engage with Tier 2 and Tier 3 telcos wit h the right value proposition. • Getting Best Out of Accenture: Refer ence clients have pointed out that Accent ure’s BPO delivery is sometimes constrained due to IT issues. If IT is not managed by Accent ure, the BPO team may have t o do temporary work ar ounds which can impact t he delivery of business out comes. In the opinion of several clients, it will be beneficial for both clients and Accenture if both IT and BPO ar e manag ed by Accenture. The Accenture team can be more proactive in conveying the value pr oposition of single sour ce IT and BPO t o stakeholders. This will also help Accent ure to accelerate the deployment of intelligent automation int o customer engagements as well as accelerate their As-a-Service strategy. Business outcomes–focused global service provider with compelling As- a-Service vision and a full set of offerings in telecom Winner’s Circle Blueprint Leading Highlights • Customer Quality – Number of Top 50 Telcos as Customer • Delivery – All Processes Across Value Chain • Plans for As-a-Service • Innovation - Examples • Business Outcomes Measurement Network Fulfillment Assurance Billing Wireless Wireline/ Broadband Cable
  • 51. © 2016 HfS Research Ltd. Proprietary │Page 51Excerpt for Accenture Where to Next for Telecom Operations As-a-Service n Analytics offerings will evolve from operational analytics to business analytics. Some service providers already embed analytics in their all engagements. We believe analytics will become all pervasive for all Tier 1 service providers. n Intelligent automation and, in particular, robotic process automation (RPA) will become deeply integrated into telecom business processes reducing the size of current labor arbitrage–centric contracts. n Digital telecom which is under 10% of service provider’s revenue will have high growth and may become 15-20% of service provider’s revenue in next 2-3 years. Service providers will figure out their value proposition in IoT value chain and support telcos in capitalizing on the IoT opportunity. n With automation, omni-channel and self-service initiatives the share of voice channel will decrease. Subscribers will use voice for complex issues. So while the share of voice channel will decrease, the average handling time (AHT) will increase and service providers will require higher quality talent to support it. n Network rollout management offering by service providers will become extensive. Also, we will see introduction and maturity of new telecom operations services offerings. We see the following as the major trends that will foster the future evolution of Telecom Operations As-a-Service over the next 2–3 years:
  • 52. © 2016 HfS Research Ltd. Proprietary │Page 52Excerpt for Accenture Telecom Operations Will More Extensively Incorporate the Ideals of the As-a-Service Economy IDEAL AS-A-SERVICE IDEAL DEFINITION NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALL PERVASIVE Write Off Legacy Using platform-based solutions, DevOps and API ecosystems for more agile, fewer exception- oriented systems 2016 2019 Design Thinking Understanding the business context to reimagine processes aligned with meeting client needs 2016 2019 Brokers of Capability Orienting governance to source expertise from all available sources, both internally and externally, to address capability gaps 2016 2019 Collaborative Engagement Ensuring relationships are contracted to drive sustained expertise and defined outcomes 2016 2019 Intelligent Automation Using automation and cognitive computing to blend analytics, talent and technology 2016 2019 Accessible and Actionable Data Applying analytics technologies, processes and resources on relevant data sets to derive insights that can help improve an enterprise 2016 2019 Holistic Security Proactively managing digital data across service chain of people, systems and processes 2016 2019 Plug and Play Digital Business Services Plugging into “ready to go” business outcome– focused,people, process and technology solutions with security measures 2016 2019
  • 53. © 2016 HfS Research Ltd. Proprietary │Page 53Excerpt for Accenture 2016-17 Recommendations: Buyers n Increase the Trust Collaboration: Push your service provider(s) to be more collaborative, more visionary, more inclusive and share with you. In turn, provide that same approach to the service provider(s). Realizing the business outcomes is easier in a close partnership than in a closed-off zero-sum mindset relationship. So, work with your service provider(s) in a manner that facilitates long-term success as well and ask forit in return. n Rethink Your Legacy Stack: OTT players are already eating your lunch. Don’t let legacy technology hold you back in your transformation for the digital era. Service providers are capable of delivering on new technology stack, but it is the perception of buyers about the robustness of new technologies and about the capability of service providers which is holding them back. Ask service providers about case studies of early adopters, develop the business case and get service providers skin in the game while leveraging new technologies to remain relevant in the digital era. n Test Digital and IoT Implications: Building further on the above recommendation, ask your service provider(s) for insight into how Digital, the IoT and other innovations are likely to impact the telecom business processes you have in place today whether the service provider delivers them or not. Use quarterly business reviews (QBRs) and other interactions with your service provider(s) to review their vision for the evolution of telecom operations. n Rethink About Captive and Local Outsourcing: Our research shows that only about one-third of potential telecom operations market is outsourced to large and mid-size service providers. The rest of the potential market is served by in-house operations, captives or small local service providers. In-house centers and small local service providers might not have scale and expertise to invest in analytics, automation and other As-a- Service initiatives. While, most large and mid-size service providers are either investing or have plans to invest in these initiatives. By leveraging large and mid-size service providers, buyers can get best out of their operations.
  • 54. © 2016 HfS Research Ltd. Proprietary │Page 54Excerpt for Accenture 2016-17 Recommendations: Buyers (continued) n Move Faster and Deeper to As-a-Service Offerings from Service Providers: Keep pushing your service provider(s) to move to an As-a-Service model that goes beyond labor arbitrage to include and offer you a broader set of choices for what solutions you adopt and how they interact with your own retained organization. Don’t settle for a long-term fixed model of solution delivery for telecom operations services, but push your service provider(s) to be flexible and agile so that future services offerings better align to your own potential future needs. n Adopt Design Thinking: Don’t dismiss design thinking as something that is a fad with little benefit for your own operations. The opportunities to sit down with your service provider(s) to better understand the business context in which your current processes operate and what can be done to realign or reimagine these processes to achieve different and/orbetter results is always an exercise worthundertaking. n Greenfield Service Providers and MVNOs can Leapfrog into As-a-Service: Greenfield service providers and MVNOs which doesn’t have any legacy constraint and get best out of telecom service providers and use them to reimagine process,reduce time to market,and make themselves foolproof in As-a-Service Economy.
  • 55. © 2016 HfS Research Ltd. Proprietary │Page 55Excerpt for Accenture 2016-17 Recommendations: Service Providers n Scale-up Innovation: Overall, buyers ratings of service providers were lowest on getting value from service provider led innovation initiatives. Most buyers feel that service providers can do better at innovation. Few buyers complain that service providers are becoming complacent and either not reimagining the support processes with design thinking, technology, analytics, automation or not doing fast enough. n Move Further to As-a-Service Offering Design and Execution: At HfS, we are strong believers in the rapid move of BPO away from legacy “lift and shift” models toward an As-a-Service solution design and delivery world. This is especially true for telecom operations, which has always had some embodiment of the 8 Ideals of As-a-Service in how service providers have sold and delivered the offering. That said, there is still significant opportunity to move this further forward and bring a more modular yet end-to-end solution stack n Prepare for the Rise of the IoT and Digital: They might not be mainstream technologies, but Digital and the IoT are becoming that way. Research labs, consulting teams and SI units inside each major service provider are working with clients around these technologies today. However, the lessons learned may not yet have made their way over to the telecom operations group running day-to-day operations. Put aside investment funds this year to encourage that collaboration so that as a service provider you can share these same insights with clients. n Develop New Service Offerings: Telcos are facing serious threat from OTTs and need all the help they can get in making themselves relevant in the digital era. Service providers can understand their pain-points and use design thinking to develop new service offerings which will make telcos competitive and relevant to their subscribers. n Move Beyond Tier 1 and English-Speaking Telcos: Most of the telco customers are either tier-one (top 50 telcos) or are from English speaking countries. There are good opportunities with Tier 2 and Tier 3 telcos and beyond English speaking countries which service providers should also target.
  • 57. © 2016 HfS Research Ltd. Proprietary │Page 57Excerpt for Accenture Pareekh Jain Research Director, Bangalore, India Overview • More than 10 years’ business experience in buy side, advisory, and delivery in the global outsourcing industry across the US, Europe, and Asia. • Coverage areas in HfS are telecom business operations, engineering services, and outsourcing deals. • Author of the book Who Is That Lady? • A strategist, researcher, and writer. Previous Experience • Business Planning Manager (Asia Pacific), Emerson Network Power • Manager, Outsourcing Advisory, Neo Group • Software Engineer, Geometric Global Education • MBA, Indian Institute Of Management (IIM), Bangalore, India • B. Tech, Indian Institute Of Technology (IIT), Delhi, India pareekh.jain@hfsresearch.com @pareekhjain
  • 58. © 2016 HfS Research Ltd. Proprietary │Page 58Excerpt for Accenture About HfS Research HfS Research is The Services Research Company™—the leading analyst authority and global community for business operations and IT services. The firm helps enterprises validate their global operating models with world-class research and peer networking. HfS Research coined the term The As-a-Service Economyto illustrate the challenges and opportunities facing enterprises needing to re-architect their operations to thrive in an age of digital disruption, while grappling with an increasingly complex global business environment. HfS created the Eight Ideals of Being As-a-Service as a guiding framework to help service buyers and providers address these challenges and seize the initiative. With specific focus on the digitization of business processes, intelligent automation and outsourcing, HfS has deep industry expertise in healthcare, life sciences, retail, manufacturing, energy, utilities, telecommunications and financial services. HfS uses its groundbreaking Blueprint Methodology™ to evaluate the ability of service and technology providers to innovate and execute the Eight Ideals. HfS facilitates a thriving and dynamic global community of more than 100,000 active subscribers, which adds richness to its research. In addition, HfS holds several Service Leaders Summitsevery year, bringing together senior service buyers, providers and technology suppliers in an intimate forum to develop collective recommendations for the industry and add depth to the firm’s research publications and analyst offerings. Now in its tenth year of publication, HfS Research’s acclaimed blog Horses for Sources is the most widely read and trusted destination for unfettered collective insight, research and open debate about sourcing industry issues and developments. Horses for Sources and the HfS network of sites receive more than a million web visits a year. HfS was named Analyst Firm of the Year for 2016, alongside Gartner and Forrester, by leading analyst observer InfluencerRelations.