New Oracle Communications Report Released: ‘Rethinking IT strategy…can it enable a step change in Communication Service Provider

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Published on May 23, 2011

published on May 23, 2011

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PwC-led research shows Communications Service Providers must make smarter investments in “faster, better, cost-effective” IT to achieve business agility required to compete effectively

TeleManagement Forum, Dublin, Ireland – May 23, 2011

News Facts

• Research released today by Oracle Communications and conducted by PwC, has found Communications Service Providers (CSPs) have a clear opportunity to improve IT efficiency, with many already planning important steps within the next 18 months to deliver the agility their businesses need to thrive in a competitive industry

• At the heart of improved business agility is the use of fewer bespoke applications which carry a higher total cost of ownership and bring considerable budget overruns, management overhead and time delays

• In terms of aligning IT with the business priorities, CIOs said improving customer experience is the top driver for IT strategy in the communications industry

• A smarter use of customer relationship management (CRM) applications is a focus for system replacement or upgrade, reflecting this prioritisation of user experience

• Portals and improved content are also a greater focus for CSPs looking to service and monetise a consumer hunger for rich media and social networking on mobile devices

• Risk, lack of budget and complexity of existing systems are the greatest barriers to effective IT strategy implementation

• CIOs are planning a move towards more standardised, off-the-shelf applications as well as a more strategic use of outsourcing in order to simplify their in-house IT, bridge existing skills divides, reduce operating costs, mitigate risk and improve business efficiency

• The report, entitled ‘Rethinking IT strategy…can it enable a step change in Communication Service Provider performance?’ is based on research, conducted by PwC who interviewed CIOs or C-level executives from 30 EMEA CSPs. The report can be accessed here.

Key findings include:

• 67% of bespoke applications are delivered with a “substantial” budget overrun (74% have some level of budget overrun)

• 52% of commercial-off-the-shelf applications (COTS) are delivered under budget

• 60% of CIOs currently spend more than half of their opex budget on ‘maintenance’

• 95% of CIOs believe they will increase their use of COTS over the next 18 months

• 40% said IT refresh or upgrade is also in the top three while 36% cited reducing operating expenditure.

Radu Tyrsina

Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time). For most of the kids of his age, the Internet was an amazing way to play and communicate with others, but he was deeply impressed by the flow of information and how easily you can find anything on the web. Prior to founding Windows Report, this particular curiosity about digital content enabled him to grow a number of sites that helped hundreds of millions reach faster the answer they're looking for.