Telecom Trends 2020

The global economy has been going through a slowdown over the past few years. 2020 appears to be no different with COIVID-19 fear still around and no certainty on what end of the dawn will look like , worldwide growth expected at 3.3 per cent in 2020. Despite this, the technology industry is likely to grow 4.5 per cent in 2020 to reach USD 2.5 trillion. Enterprise software is the fastest growing at 10.5 per cent; an additional impetus is coming from the focus on digital technologies, especially analytics and legacy system modernization.

 Executives are spending across a variety of new technologies to solve specific customer problems, rather than any ‘one thing.’ Cybersecurity is top but cloud, AI, and big data are clustered together close behind, in order to harvest the true potential of data amid digitization. 79% of executives are investing in digital transformation, given how much can be achieved with small budgets and limited technical expertise.

 We can define Telecom Trends as disruptive and emerging technology that fulfils unaddressed needs and/or solves global problems. This includes the underlying technologies themselves (e.g. Artificial Intelligence, IoT, Blockchain, Augmented Reality, 5G, Virtual Reality, Quantum and Edge Computing), as well as adjacent products and services (e.g. Smart Homes and Wearable Technology). Beyond social media, the next wave of disruption within commerce is likely to be driven by voice technology and the desire to provide personalized product recommendations (e.g. Voice Recognition and Virtual Assistants). 

While it is encouraging to see digitalization becoming a permanent fixture of modern life, on the flip side concerns regarding data governance and privacy are increasing as consumers consider how companies are making use of their personal data (e.g. Digital Ethics & Privacy, Cybersecurity and Data Monetization). Authentication of the consumer will remain a priority (e.g. Facial Recognition) for a variety of services (e.g. Digital Payments & FinTech). 

New market opportunities are emerging (e.g. eSports, Education Technology, Digital Twins and Geospatial Technology), while, despite significant hype and significant levels of investment, others (e.g. Cryptocurrencies and Smart Dust) appear likely to have limited impact based on the known variables today.  

 The latest research from Barclays affirms the technology trends with AI,5G ,Cybersecurity and Digital Payments creating the more impact in this financial year while Digital Twin and Cryptocurrencies are yet to find feets with large scale deployment opportunities.

Looking within the house first, Government of India’s ambition to be a $ 1 trillion data economy by 2025, we quickly needs to be assemble all the components of this jigsaw with a meticulous strategy that would guide the industry on aspects like data ownership and sharing; cybersecurity policy to make India a trusted partner; talent, for a future-ready workforce.

The challenges before kicking the tyres on road will be around Investment in building innovation hubs and business friendly policies. For the Indian technology industry to be prepared to exploit this opportunity, it will have to focus on its own transformation – this needs to be proactive so that the industry can anticipate future trends and lead the change for itself, its customers and for India.

The forecast of skills trend as per Nasscom is still continued to be around 5 pillars

·      Cloud

·      Cybersecurity

·      Big Data

·      IoT / Edge Compute

·      Blockchain

*Not in order of priority

 Key Takeaways

? In 2021, most vendors will face a crisis of prioritization: continue to invest in their declining, premises based portfolio or invest in new cloud-based platforms.

? Those vendors that fail to significantly invest in cloud services will fail to attract new prospects and, over time, lose their install base through competitive churn.

? Vendors with an on-premises legacy should incentivize customers to move to cloud-based services through revised licensing (incorporating on-premises and/or cloud-based subscriptions), hybrid support, and new platform features.

? Software subscriptions offer a flexible pricing model and carry little upfront expense.

 Conclusion

 The telco market in 2020 and beyond will be revolving around addressing these five key challenges which are imperative for their market penetration and opportunity for young entrepreneurs and professional to have focus on .

·      Process automation leads the list of long-term IT enablers.

·      The post-2020 landscape will be transformed by 5G.

·      Digital business models, customer experience and cost control lead the 2020 strategic agenda.

·      Network capex is trending up but IT spending profiles vary.

·      Analytics and virtualization are the top innovation drivers, but legacy IT and a lack of skills are acting as brakes.

As a summary of what we see and have learnt from digital transformation journey so far suggest that the interplay of cost reduction, portfolio diversification, digital skills and organizational agility within strategic road maps presents a new set of challenges. Those who push for cost control may sacrifice long-term agility by underinvesting in the next two years, while those who prize agility and digital service development may already be facing a more pronounced skills gap than the rest of the survey sample. And even those organizations that are putting their people at the front and center of transformation should take care that they also maximize their exposure to new technologies that can transform their operations and customer-centricity. Looking ahead, all players will have to strike a balance between more proactive support of the customer experience and more dynamic business and operating models.