Research by IDC reveals a gap between enterprises’ expectations and solutions offered by telecoms service providers
November 17, 2016
A global study commissioned by Tata Communications reveals that the solutions that network service providers offer don’t always meet the expectations of enterprises, who rank security (52%), cloud (43%) and mobility (32%) as their top technology priorities. Conducted by IDC amongst enterprises and service providers across 32 countries in Africa, Americas, Asia Pacific, Europe and Middle East and North Africa,, the research also shows that enterprises see partnerships as key in their decision making process, indicating that by finding the right partners, service providers could win more business from this market segment.
The global study shows that enterprises consider service providers best equipped to increasing their network capacity or reach (73%), or delivering hybrid networking (66%) services, while around half (48%) of enterprises feel that their network service provider is best suited to address their cloud needs. Approximately a third (31%) of enterprises feel that having access to cloud services developed by their service provider would help support them better on their cloud journey.
“Through the right partnerships, service providers are able to open up new revenue streams in growth areas such as cloud and unified communication and collaboration (UCC), without having to invest in developing their own solutions from scratch,” said James Parker, President, Global Sales, Tata Communications. “By joining forces with like-minded organisations, service providers are best-placed to address their customers’ increasingly complex IT requirements and facilitate their digital transformation.”
Around three-quarters (76%) of service providers think that supporting employee mobility is key for enterprises’ UCC strategy, yet only a quarter (26%) of enterprises rank this as a top priority. While more than a quarter (27%) of enterprises cite lack of employee readiness as a barrier for UCC adoption, the service providers surveyed don’t see this as an issue for their customers.
“Our research indicates that many service providers haven’t kept up with the rapid pace of digital disruption in enterprises, which is jeopardising their ability to win business in this segment,” said James Eibisch, Research Director, IDC. “In order for service providers to be able to meet enterprises’ changing IT needs, they should explore partnering with other like-minded players, complementing their own solutions portfolio. The right cloud ecosystem, for example, makes it quicker and more cost-effective for service providers to grow their revenues from the cloud.”
The research suggests that close to a half (41%) of service providers don’t have a definite stance on partnering. In contrast, more than half (57%) of enterprises say that when choosing a service provider, it is important that they find the right partners to fill gaps in their offering or extend their reach. Additionally, service providers overestimate the importance of reputation in enterprise decision making by a third (30%).
James Parker continued: “Our go-to-market strategy is focused on enterprise enablement, and we are seeing a growing appetite for partnerships in the service provider community globally. Partnering with Tata Communications allows service providers to speed uptime to market by offering our wide range of services on a white-label or sell-with basis, without having to invest in developing these capabilities themselves. That is one reason why we have established our global partner programme, supporting our partners in delivering a full portfolio of cloud, mobility, managed security and UCC services.”
 562 enterprises and 34 service providers in Thailand, Australia, New Zealand, Tanzania, China, Japan, Philippines, Bahrain, Turkey, Saudi Arabia, Egypt, Algeria, South Africa, Qatar, Brazil, Mexico, USA, Canada, Columbia, Chile, Nigeria, Kenya, Morocco, Mauritius, UK, Germany, Netherlands, Sweden, Finland, Spain, Portugal, Bulgaria
 Source: IDC Infographic, sponsored by Tata Communications, Accelerating Transformation with New Partner Strategies, November 2016
About Tata Communications
Tata Communications Limited (CIN no: L64200MH1986PLC039266) along with its subsidiaries (Tata Communications) is a leading global provider of A New World of Communications™. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to over 240 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications Limited’s Annual Reports. The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.
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Press Release -- November 17th, 2016