High on telecom average on spends

High on telecom, average on spends

In its first year, V&D-IDC Enterprise Communications Priorities Survey ’07 attempts to assess current communications infrastructure while tracking the pattern of investments in technologies for voice and data connectivity in the future. The survey also ranks service providers based on the satisfaction levels

Saturday, July 21, 2007

Priority Grid for Service Providers
On the basis of the respondents’ feedback, here are some key points that the top service providers need to leverage on, and work on some key concern areas identified by the enterprise customers

BSNL
Points to Leverage

Ability to address customer specific requirements efficiently
On time delivery capability
Functional robustness of existing network

Major Concern Areas

Simplifying SLAs to enhance customer’s satisfaction
Need to address outage duration quickly
Quick to respond to failure incidences

MTNL
Points to Leverage

Functional robustness of the network
Flexibility to satisfy customer’s unique needs
Quick response to failure incidences

Major Concern Areas

Simplifying SLAs to enhance customer’s satisfaction
Expansion of customer support coverage
Enhance capability to address all the needs of the customers

Airtel
Points to Leverage

Wide presence of site engineers
Ability to respond quickly to failure incidences
Low incidences of service outages and repeat trouble

Major Concern Areas

Enhance functional and technical understanding of the customer support team
Reduce outage duration
Simplifying SLAs to enhance customer’s satisfaction

VSNL
Points to Leverage

Ability to address customer specific requirements efficiently
Efficient monitoring of network performance
Assurance for back-up in critical situations

Major Concern Areas

Simplifying SLAs to enhance customer satisfaction
To reduce outage duration quickly
To enhance functional and technical understanding of the customer support team

Besides the top three challenges mentioned above, the key challenge for the Manufacturing vertical is integrating voice and data traffic with ease, getting adequate assistance in design and implementation of communications infrastructure. They also complain about insufficient SLAs from service providers.

The FMCG/ Consumer Durables/ Food vertical faces a shortage of skilled manpower, and requires adequate support for design and implementation of communication infrastructure.

As the BFSI vertical is expanding its length and depth across tier-2 and tier-3 cities in the country, its top most priority is to ensure network access, connectivity to its customers for critical business demands and connectivity to small towns.

Energy/ Infrastructure/Utilities vertical faces a key challenge in integrating voice and data traffic and shortage of skilled manpower. They also complain about having bitter experiences with service providers and connectivity vendors that have resulted in delayed telecom implementation.

As IT/ITeS companies are opening up offices beyond metro cities into tier-2 and tier-3 cities, getting connectivity in these towns is a key challenge; next challenge is tackling shortage of manpower, and connecting handheld devices to the communication network.

Key Parameters Covered Under SLAs
Committed Bandwidth	95%
Network Availablity/Uptime	89%
Back Up Guarantee	63%
Mean Time To Repair	61%
Connection Throughput	61%
Maximum Duration Of Outage	55%
Maximum No Of Outage	53%
Base: 62 Large Enterprises

The key challenge for the Oil & Gas vertical is getting assistance in design and implementation of network, besides connectivity issues in smaller towns and shortage of skilled manpower.

The service providers need to leverage the opportunity of vertical expansion of enterprises in smaller towns and focus on making comprehensible SLAs to suit enterprise specific needs. Making robust and flexible networks will be a key priority across all verticals.

Outsourcing ICT Management
Infrastructure management outsourcing is a tactical decision to not just save cost but also a strategic move to stay agile while being operations-centric. As large enterprises have reached phase 1 of maturity levels, companies now want to focus on their core competence, something they can do more cost effectively than anyone else.

Practice of outsourcing domestic leased line management is the highest currently as well as in the future plans of almost all verticals. VPN management outsourcing currently has highest takers in Oil & Gas (71%) followed by FMCG/Consumer Durables/Food & Beverages (53%) and Energy/Infrastructure/Utilities (55%), and the trend continues in their future plans. VSAT management outsourcing has highest takers in BFSI (47%) and IT/ITeS (42%). Outsourcing of VoIP/IP telephony management is highest by Media & Entertainment (50%) and the IT/ITeS sector (47%).

However, in future, VPN management outsourcing will find more takers in the Oil & Gas, Manufacturing and BFSI verticals. VSAT vendors can focus more on the Media & Entertainment sector that is likely to increase VSAT management outsourcing when compared to domestic leased line management and international connectivity service management. International connectivity services management outsourcing will be high priority for Manufacturing and Media & Entertainment.

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