Costs reduction in the Telecom industry. Why and how?

What is the situation today when it comes to telcos?

For starters – nowadays, new digital players are using technology advantages to the fullest extent, changing the competitive landscape in the telecommunications industry. On top of that, consumers transform their demands, preferences, and needs at a breakneck pace.

So, what can a company do to ensure its profitability and growth?

Nothing less than placing particular importance on cost management, seeking new ways to reduce costs through innovative approaches that replace conventional methods.

Cost growth in the telco 

Significant cost reductions must become a core competence for companies. And they are only possible if substantial business/operating model changes are done.

This will take an extreme mindset change and the ability to ‘think outside the box’ and implore innovation.

Tendencies are to make the entire world “flat” with abundant voice and data volumes. However, for this to happen, it will take many new costs – from the developing expenses to promotional discounts to attract new customers.

As pressures on margins and prices increase, companies will face a significant decline in profits.

How to stay in the game?

Automation for the win. Automation is one of the primary keys to optimizing telecom project management expenses. It enables companies to reduce manual, tedious, and repetitive work, lowering operating costs as it frees up your staff for higher-value work, driving down costs and boosting revenue.

Also, many errors are reduced through automation, reducing overall costs in a rather significant way. By knowing that the information is correct, a company does not have to worry about accurate calculations or spending a penny more than it should.

Automation helps the organization see where the money is going, so it can tighten up policies and controls, getting a better handle on the expense spending significantly.

Undoubtedly, many – if not all players must reduce their long-term costs. The organization should start acting cost-consciously to leverage operational saving measures, which is impossible without the right tools and procedures, including total cost transparency. Of course, all tools and strategies must be aligned with actual business drivers.

Also, optimizing costs requires a radical change of culture across the entire organization. What does it mean? Company culture should continuously challenge the current expenditure to help adapt to rapidly changing conditions, ensuring higher profits.

Remember that alignment among units is crucial for this new cost-reduction philosophy. As well as the alignment between short-term and long-term goals. A critical point to consider is definitely to leverage operational saving measures by utilizing proper tools and procedures.

Teodesk and cost reduction

The first thing that Teodesk puts in order is the most important one – communication. Integrating Teodesk, a cloud-based solution, your company creates a healthy flow of communication between managers and the entire team, with no need for micromanagement.

The next thing is transparency.

Sharing documents between coworkers will make all documents accessible to all team members at all times. Especially those that refer to costs. We all know that the actual costs can significantly differ from planned ones. With an integrated Teodesk solution, team members can keep an eye on all the planned and existing resources.

By utilizing Teodesk within the company, you will have housed all your project budgets and financial data while simultaneously managing costs across the entire enterprise. In addition, this solution will help you align your finances to projects and programs, keeping workflow on track.

Talking about cost awareness!

With Teodesk, you can efficiently manage all your projects and any activity with accuracy and real-time tracking, ensuring all your funds are budgeted the way they should be!

You can now associate finance items with tasks, phases, project milestones, or reports for absolute visibility. Once captured within Teodesk, your company’s cost will be easier to manage and reduce by identifying, prioritizing, and optimizing additional saving measures.

Your only challenge would be to find the hidden cost reduction potential by enabling a broader audience within the company to act cost sensitive. Another challenge is to have that culture in place to question the existing cost basis constantly.

So, those cost optimization models are a pretty hot topic in the telecom industry. Every operator is seeking growth and competitive advantages, which can be done with the help of intelligent automation and cloud computing. Moreover, with the digitalization of the existing business, operators can create new revenue streams.

The only thing they need right now is a little push and encouragement to have faith in tools. After that, we all need help with not-so-important-and-repetitive-stuff, so we can focus on what really matters.