1、Photo by Marc Tan Kearney,SingaporeLeaner and more productive:the new telco paradigmBy the numbers:significant workforce reductions over five yearsKearneys Global Competitive Benchmarking(GCB)provides a comprehensive and precise comparative view of changes in costs and manpower of leading operators
2、from key international markets over time.The data shows that,between 2018 and 2023,leading telco operators from key international markets decreased total workforce by 14 percent(see figure 1 on page 2).The manpower reduction,meanwhile,was not accompanied by a sharp increase of outsourcing or the use
3、 of contractors.Indeed,the overall share of external services remained flat in that same period,suggesting that productivity of the internal workforce grew over the five-year period.While almost all business areas witnessed a decline in the number of FTEs,the drop was especially acute in fixed netwo
4、rk-related activities and in customer management.The one exception was IT,where job functions aimed at streamlining systems and applications,as well as supporting new requirements to digitize customer-facing activities,resulted in a net increase of workforce requirements.Over the past decade,the glo
5、bal telecom industry has experienced an unprecedented level of disruption.In response,telcos have embraced a variety of transformation programs to optimize spend,reinvent business models,and define a position on the value chain.Recently,inflationary pressure across many markets as well as democratiz
6、ation of digitization,automation,and other enhancing productivity levers have accelerated the pace of these transformations while the emergence of(generative)AI use cases will push it even further.Several major telcos,meanwhile,have undertaken staffing cuts to reduce costs and create leaner organiza