Global Telco Transformation: Achieving Cost Efficiency and Local Market Agility Through Strategic Offshoring
A leading global telecommunications company faced the dual challenge of maintaining competitive pricing while ensuring exceptional service quality amidst the fast-paced evolution of the telecom industry. The company operated in multiple countries, each with its unique market dynamics, regulatory environments, and customer expectations.
The primary objective was to optimise the company's operating model by analysing its value chain, identifying non-core back-office activities suitable for offshoring, and streamlining operations. This strategy aimed to maintain local sales and marketing agility within each country, ensuring the company remained responsive to local market needs and competitive pressures.
Our Process
We began with a comprehensive analysis of the company's value chains across all operational regions. This involved:
Mapping out all activities from network operations to customer service, identifying core versus non-core functions.
Assessing the efficiency, cost, and strategic importance of each activity.
Identifying opportunities for consolidation and offshoring that would not compromise service quality or market responsiveness.
Skill Evolution and Workforce Development
We recognised that offshoring would fundamentally shift the types of work done within local markets. To empower local teams in this new model, a focus on skill evolution was critical. Proactive workforce planning initiatives would ensure the company leveraged the market expertise of its local employees while adapting them to the new focus on customer-centricity, strategic decision-making, and higher-level technical support.
Upskilling and Retraining Initiatives
In tandem with the offshoring process, we developed targeted upskilling and retraining programs for local employees. These included:
Advanced Technical Troubleshooting: Upskilling local helpdesk personnel to manage complex customer issues that could not be handled by offshore teams.
Consultative Sales Techniques: Empowering local sales teams with the ability to provide tailored solutions aligned with evolving market needs and competitive pressures
Data Analytics and Market Interpretation: Training select individuals to analyse market data, extracting insights to drive localised strategies and decision-making.
To retain market responsiveness, we recommended strategies to maintain sales and marketing agility within each country, including:
Localised decision-making authority to quickly adapt to market changes.
Flexible marketing budgets to capitalise on local opportunities.
Continuous feedback loops between local and global teams to share best practices and market insights.
The Results
The strategic offshoring initiative led to significant benefits:
Cost Efficiency: Consolidation and offshoring of non-core back-office functions resulted in a 25% reduction in operational costs.
Enhanced Focus on Core Activities: Local teams could concentrate more on customer-facing and revenue-generating activities, improving service quality and market share.
Increased Agility: Local sales and marketing teams retained the flexibility to adapt strategies based on real-time market insights, enhancing competitive positioning in various regions.
Scalability: The new operating model provided a scalable framework that could easily adapt to future expansions or contractions in the market.
Employee Experience: Understanding the transition required adjustment, the company invested in extensive retraining programs and transparent change management. This proactive approach was vital to the success of the new model, ensuring the local workforce felt empowered to excel in their evolved roles.
