Despite 2023 being a year of exciting advancements in the telecom space, there are many business functions that seem as if they’re stuck in some bygone era, which is creating significant bottlenecks to progress. According to a recent industry survey, operational agility, and the ability to deliver services are currently the top drivers for communications service providers’ (CSPs) digital transformation efforts. [1] When it comes to how CSPs invest their funds, business processes and areas like wholesale services often get pushed to the back of the line. That needs to change and service providers themselves know this better than anyone else. Ninety percent of CSPs we surveyed in our online poll indicated it was ‘significantly important’ for a service provider to automate the back-office to compete and deliver differentiated services [2].
The 1980s called - they want their fax machine back
Neil Osmond, Distinguished VP Analyst, Gartner, explained it well when he said, “Nontechnological aspects, if not addressed, can mask the depth of organizational transformation required and become serious inhibitors.” [3] For example, in today’s era of big tech and hyperscalers offering on-demand services, many CSPs still rely upon a hodge-podge of emails, phone calls, spreadsheets, and outdated web portals to deliver service to out-of-network business locations – which constitutes about 20% of all enterprise orders, based on our customers’ experiences. The results are often ugly, with missed delivery targets due to mistakes and order fallout, and irate enterprise customers who don’t like waiting months for service.
I’m happy to say that the industry is now working to create a more modern and automated wholesale ordering ecosystem, and we’re proud to be part of that effort - but there’s more work ahead.
Some of the key trends we expect to see in 2024 will be related to how CSPs can build a business environment with a user experience akin to big tech and hyperscalers – automated, on-demand, and frictionless:
#1: Providing Business Connectivity On-Demand through Network-as-a-Service (NaaS)
CSPs have started to take note of how hyperscalers deliver cloud services and are doing what they can to reproduce that environment for their own business customers. Network-as-a-Service (NaaS) is a cloud-based approach that speaks to this need. It enables businesses to simply run their network without having to own, develop, or maintain their own infrastructure. Organizations have the freedom to purchase services based on consumption and to grow as their business requirements evolve - delivered across a standards-based automated ecosystem of partners.
“Traditional CSPs have a leg up as they are already trusted partners by most businesses, but there are many competitors out there, including network infrastructure vendors, big tech, and hyperscalers."
The typical benefits of NaaS from an enterprise’s perspective are ease of access and a reduced need for CAPEX and IT spend. Based on flexible usage-based subscriptions, from a CSP’s perspective, NaaS can allow them to differentiate their offerings as a competitive advantage by addressing the requirements of specific business verticals within their markets.
It's predicted that 90% of enterprises will adopt NaaS for at least a portion of their network services by 2030 [4], which means the market potential is huge. The question is, where will it come from? Traditional CSPs have a leg up as they are already trusted partners by most businesses, but there are many competitors out there, including network infrastructure vendors, big tech, and hyperscalers.
#2: The Growing Use of APIs
Another trend for 2024 is the growing use of APIs, which have become the indispensable ‘connective tissue’ of telecom networks, services, and software systems, tying together a plethora of digital business applications.
At TransUnion, we believe 2024 will be a year of significant growth and adoption in the API arena because they have become such a critical component, not only in helping automate networks, but also in improving a carrier’s business operations. That’s because APIs facilitate the sharing of data between distinct software solutions at different companies and enable businesses to share valuable digital infrastructure. When business systems are equipped with APIs, they typically become more efficient, agile, and productive. In fact, when APIs are used, wholesale orders can get processed up to 5X faster – which means shorter quote-to-cash timelines and happier customers.
The global industry association MEF, with support from members like TransUnion, has developed a set of Lifecycle Service Orchestration (LSO) APIs that are being adopted by leading operators around the world. They provide a framework for enabling end-to-end business and operational automation and orchestration across multiple provider networks, allowing CSPs to do things like buy and sell wholesale services in a more seamless way.
We’ve integrated the MEF LSO Sonata API (and others) into our order management software, TruContact Universal Order Connect (UOC), so CSPs don’t have to use their own IT resources to do it themselves. We use UOC to seamlessly integrate MEF LSO into the existing carrier wholesale ecosystem. When CSPs adopt tools and software that embrace the API mindset, they’re helping to transform and modernize their business.
#3: Outsourcing Legacy Processes & Transforming Ways of Working
While many CSP digital transformations are well underway in terms of network technology, legacy business processes can remain intact for years — creating productivity bottlenecks that can quickly negate innovation and transformation in other parts of the organization. Part of the problem is often a shortage of skilled professionals with sufficient knowledge and experience to maintain these legacy systems, and without the ability to hire and train these skills in-house, organizations can lack the agility they need to compete.
TransUnion TruContact Managed Services can help provide a workaround. CSPs often don’t have the time or resources to solve back-office, process-related challenges and prefer to outsource to experts so they can focus on newer or more innovative areas of the business. Analyst forecasts back this up. While total IT spending is forecast to grow 3.5% globally in 2023, managed service spending is predicted to grow 12.7% [5]. TransUnion Managed Services combine API-based automation and skilled personnel for carriers’ order management functions.
How TransUnion helps
Our TruContact™ portfolio of carrier provisioning solutions and services, powered by Neustar®, help process over 90 million carrier orders per year, and we have over 30 years of experience under our belts. That means we have the tools and expertise to help improve and modernize your order management function, including your wholesale business - so you can compete more effectively in the years to come.
TruContact Universal Order Connect (UOC) and UOC Marketplace are cloud-based solutions used by some of the world’s largest CSPs to streamline and automate the buying and selling of wholesale connectivity services. And for those who prefer to outsource this piece of their business, our Managed Services offering could be the answer you’ve been looking for.
To learn more, visit: www.transunion.com/solution/trucontact/order-management
Sources:
- Light Reading, ‘CSP Digital Transformation Survey: Making Headway or Facing Headwinds?’ November, 2023
- TransUnion Service Provider Poll, 2021
- Gartner, ‘How to Revitalize a Stalled Digital Transformation’ September 16, 2019
- ABI Research, ‘Enterprise Opportunities in Network-as-a-Service Adoption’ Dec. 2022
- Canalys Research, ‘Channel partner opportunities and trends by region’ Sept. 2023
