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Achieving Operational Excellence in Mobile Telecom

1 2 3 MOBILE TELECOM AT RISK WHY INFORMATION TECHNOLOGY IS RELEVANT HOW IT CAN HELP REDUCE RISK AND IMPROVE OPERATIONS: THREE STEPS TO LEVERAGE IT EFFECTIVELY OFFSHORING INCREASE IT ARCHITECTURE FLEXIBILITY RE-VAMP CRM AND BILLING CAPABILITIES 4 5 CONCLUSION PARTNERING WITH SYNTEL Achieving Operational Excellence in Mobile Telecom Mobile operators in mature western markets are facing operational challenges. As such. Flexibility. . Information Technology is at the hub of the mobile product and is also central to providing world-class customer service. capabilities and architecture play a central role in enabling mobile telcos to achieve their operational aspirations. the underlying IT systems. speed-tomarket and cost containment are more important than ever before.

UK. billing and provisioning.) The complexity of the problem increases because of the lack of standards and open architectures in the network landscape (most telecom network environments are built on vendor-specific. no-frills vs. To succeed in this environment. In this situation. and – Several global mobile operators have outsourced IT applications development and maintenance to low-cost. as opposed to acquiring “new” customers. and talk is already underway of an IP-based 4G environment. speed-tomarket.5G to 3G. Information technology is at the hub of the mobile product and is also central to providing world-class customer service. – Many telcos have outsourced customer care and bill generation functions. US).g. and as such the underlying IT systems. Germany. etc. mobile operators have segmented their customer base and are offering segmented offerings for each (e. and cost containment are more important than ever before. global roaming+value-added services such as MMS. • Evolution and commoditization of the basic voice product as customers’ mindsets shift from the mentality of buying a product to that of buying a solution (which has lots of valueadded services bundled into it). particularly customer care. MOBILE TELECOM AT RISK Mobile operators in mature western markets are facing operational challenges—flexibility. telcos are increasingly focusing on their core competencies and are choosing to 2. partner or outsource along several dimensions of their value chain. For mobile operators to succeed in their retention strategies the underlying IT systems must be flexible and the IT architecture must be conducive to rapid product introductions (and changes) with minimal costs.g. This evolution of the technical landscape of the core mobile network puts a lot of pressure on IT systems that have to integrate to these telecom technologies (e. Some examples include: – Customer acquisition via branded sales partners is common in Germany and other parts of Europe.g. capabilities and architecture play a central role in enabling mobile telcos to achieve their operational aspirations.. WHY INFORMATION TECHNOLOGY IS RELEVANT IT is extremely relevant to this discussion because it is at the hub of the mobile product and is central . high quality vendors in India. • The focus is shifting from customer acquisition to retention in mature western markets (e. RISK FACTORS There are several factors of the mobile telecom industry that put operators’ ability to succeed at risk. • Cost consciousness precedes turnover and market share objectives as many western mobile operators strive to remain viable in an increasingly competitive environment. etc.) This shift in focus puts tremendous pressure on the underlying IT systems. and the underlying CRM and billing systems become quite critical to the mobile operator’s success in the marketplace. internet. As a result. proprietary technologies). • The telecom technical landscape is undergoing rapid change as operators upgrade from 2/2.. particularly in terms of the IT-enabled functionality provided for customer care and billing…” 1.. the post-sale customer service gains more importance. provisioning systems.“IT is at the heart of the mobile solution. rating engines. the game changes to retaining customers and churning other telcos’ customers. As mobile telecom penetration approaches saturation in some markets.

MSCs. with only ~5% of Fortune 1000 having fully exploited IT offshoring as of 2004 (see Figure 2). trouble ticketing. etc. e. cross-selling/up-selling. c) Re-vamp core customer care and billing functionality by leveraging third-party packages and adopting a pragmatic and cost-effective data and integration architecture. depending on the degree of urgency for the mobile delivering world-class customer service. the mobile telecom landscape is undergoing several changes.g. online services. etc. As discussed earlier. rating. Factor cost savings arising from labor arbitrage alone contribute to about 45%-55% cost savings. customer care. ring-tones.. IT is at the heart of the mobile solution. operators can choose to embark in three areas: a) Outsource key IT applications (development and maintenance) as well as key IT-enabled functions such as billing. loyalty programs.. Hence. cost effective IT solutions becomes a core requirement for it to succeed in today’s and tomorrow’s marketplace. and many mobile operators have already embarked on this journey. reengineering and scale advantages. the telco’s ability to deploy high-quality. Specifically high on the list are: • • • • • • Applications development Applications maintenance Help desk Customer care Bill processing Payroll 3. . Initiatives in these areas can be applied to varying degrees (and simultaneously if required). CDR consolidation and maintenance of customer records.g. e. • Communication attributes that are linked to the core mobile network and enable the voice/data to be transmitted. payroll. bill calculation. one of which is a shift from a product to a solution mindset. enabled by leading middleware solutions]. MMS. games. Six value drivers in mobile telecom Offshoring • Cost Savings. and introducing re-usable services between key applications [via an integration backbone. HOW IT CAN HELP REDUCE RISK AND IMPROVE OPERATIONS: THREE STEPS TO LEVERAGE IT EFFECTIVELY Given the relevance of IT in reducing mobile telecom pressure points.g. particularly in terms of the IT-enabled functionality provided for customer care and billing (e. etc. wider and deeper talent pools.. Other areas gaining importance include customer and market analysis. Gartner predicts offshoring (IT and BPO) to grow at 14% CAGR between 2001 and 2008 (see Figure 1). customer care “service packages”. de-layering the architecture via selective encapsulation of legacy systems.g. BSCs. Forrester Research indicates that offshoring is still in an early innings. • Non-functional attributes that are essential for delivering and maintaining the mobile service.) Hence. telecommunications switches. bill settlement. and additional cost and productivity benefits are derived from better quality of service. e. This is achieved by segmenting the architecture into logical domains. The mobile product can be segmented into three parts: • Functional attributes that include the core features of the product. and that offshoring volumes will continue to grow at a healthy pace for the foreseeable future. SMS. OFFSHORING Offshoring typically yields 65-70% cost and productivity gains. order management. tariff plans. etc. Vendors typically offer 40-60% cost savings off the onshore cost base.. Offshoring “favorites” along the value chain IT and IT-enabled components of the mobile operator value chain are among the offshoring “favorites”. This is the first and most obvious value driver due to the labor cost arbitrage between the offshoring location and the host country. etc. Current practices and future projections for Offshoring Independent analysts predict that the offshoring wave has only just begun. IT-enabled solutions play a key role in alleviating pressure points faced by mobile telcos today. b) Increase in the flexibility of the underlying IT architecture of core systems of the mobile operator. As a further indication to the future growth of offshoring.

the mobile operator is able to concentrate on its core competencies vs. Only 5% of Fortune 1.000 are fully exploiting offshore. . Some of these are not viable at the onshore location. as done by one of the leading global credit card companies.000 companies 80% Percentage of experimenters 60% Percentage of committed 40% Percentage of full exploiters 20% 0% 2003 2004 2005 2006 2007 2008 Source: Forrester Research. • Quality Improvement. This enables the mobile operator to deploy new products and services without any constraints due to technical talent shortages. • Pursuit of new IT-enabled products and services. The onshore company is able to leverage vendor infrastructure and thereby avoid capital cost expenditures. attempting to become a stellar systems integration company. Inc. • Broader and Deeper Technical Skill Pool. are possible on the offshore Figure 2: IT Offshoring: The best is yet to come Percentage of full bystanders Percentage of Fortune 1. Offshore vendors are typically masters of business processes and the quality of IT solutions is much higher due to their strict adherence to standards (e. • Focus. but because of the cheap labor costs. via their offshore center in India.g.Figure 1: Offshoring growth predictions Business Process Offshoring (BPO) Worldwide Offshoring Spending ($ Billions) 827 367 321 128 193 460 CAGR Percent 14 16 IT Offshoring (ITO) 13 Source: Gartner 2001 2008 location. One example is dialing up individual customers who are delinquent in payments. As a result of the other value drivers. • Capital Cost Avoidance.. ISO 9001) and their strive for continuous improvement demonstrated by Six Sigma and SEI CMMI Level 5 capabilities.

The third part of the architecture contains the applications. servers. in 2003.INCREASE IT ARCHITECTURE FLEXIBILITY The IT architecture of the mobile telco is central to its ability to introduce new products and services quickly and flexibly. For instance. they will benefit from the expertise and support of a skilled IT vendor. By separating the architecture along these three natural “domains”. etc. These services can be developed at multiple levels (e. interfaces and networks that handle functional or value-added services. CONCLUSION As mobile telecom operators battle operational challenges. Encapsulation is achieved via XML-tagging and other methods to develop common application programmable interfaces for select legacy applications. and customer retention strategies can be pursued more flexibly and speedily. across all market and customer segments. and any combination of these can be bundled to create a composite service. and align with the service delivery of this product. such as MMS. back-office transactions. servers. Just as the mobile product has three broad components. to bolster their competitive position in the market. the IT architecture should have three broad components that align with this product. The first part of the IT architecture therefore contains all the applications. Strategic drivers and target end-state Typically. Mobile Telco IT architecture: Best Practice Overview Best practices indicate that the IT architecture of the mobile telco should be aligned with the intrinsic architecture of the telecom product and service. billing and data warehousing platforms in Europe alone) to streamline business processes. servers. billing. RE-VAMP CRM AND BILLING CAPABILITIES For mobile operators that are under continuous pressure to respond to competitive moves. “Create/Read/Update/Delete/ [Customer]” can each be a service. 4. etc. games. ring tones.g. MSCs. and reduce costs by increasing back-office efficiencies. to respond to market pressures. etc. mobile operators that are “feeling the heat” from competition go in for re-vamping their CRM and Billing capabilities. and strengthen their business viability. As a result of pursuing a re-vamp of CRM and billing capabilities. Operators can leverage Syntel’s extensive industry experience and our unique perspective on the specific process . The systems integration project cost Orange more than 150 Million Euros and was considered central to Orange’s continued success in Europe. Some publicly known examples There are several global examples of mobile operators revamping their core CRM and Billing capabilities. via a set of re-usable “services” as described below. The second part of the IT architecture contains all the applications. Custom-developing a host of reusable services between applications and/or encapsulated interfaces and implementing these services via third-party middleware tools complete delayering. SMS. develop an integrated view of its European customer base. each of the three domains can evolve with a certain degree of independence. an innovative way of salvaging and building upon key parts of the architecture is needed. interfaces and networks that handle the nonfunctional services such as CRM. while remaining in synch with the other two domains. • Providing higher quality of deployed IT solutions. interfaces and networks that handle communications via the core telecommunications network such as the BSCs. mobile operators aim to achieve an end-state where customer care and billing changes can be made very quickly. • Enable higher customer-centricity by providing integrated customer care and billing functionality and “one view” of the customer. by leveraging robust capabilities of third party CRM and billing packages. provisioning. at the lowest level. with four main strategic objectives in mind: • Provide higher flexibility for the introduction and configuration of new products and services. having a best-in-class and well-integrated CRM and Billing capability is a must. Since most global operators have legacy IT architectures that cannot be “scratched and burned”. via the integrated functionalities of third party packages. Orange announced publicly that it was undergoing a massive systems rationalization effort (at the time Orange had more than 20 CRM. De-layering The next step towards creating a flexible IT architecture for the mobile telco is to de-layer the architecture by selectively encapsulating select legacy systems. • Enabling pre-paid and post-paid convergence.

more than 50 percent of our IntelliSourcingTM engagements are structured as fixed-price contracts. it adheres to the DMAIC— Define. This focus extends throughout the Syntel organization. We are so committed to your success and to our delivery of value to you. or are in the process of pursuing certification. Analyze. • Increased work efficiency. • Greater costs savings. these services typically have a blended delivery model where part of the work is done onsite at our clients’ facilities and part of the work is done in one or more of our global development facilities. Syntel follows the widely recognized Six Sigma methodology to continually measure and improve performance and processes. and quality improvements for a majority its Global 2000 customers. we are managing the full life cycle of their IT applications development and maintenance needs. Quality focus and commitment is a key characteristic that distinguishes Syntel from many other outsourced providers. you will see that Syntel thinks first of our client’s business strategy and our client’s imperatives for business success. • Constant work process improvement. Our customer-centric approach and our ability to understand your mobile telecom business set us apart from our competitors. we also offer a full range of custom development and package implementation services. Syntel was the first US-based firm to launch a Global Service Delivery model in 1992 and leverages this model today to deliver increased time-tomarket. custom development and package implementation services enable us to fully address the IT-related pressure points for our clients in the Mobile Telecom vertical. risk management. processes. Syntel’s Solutions for Mobile Telecomm Syntel has developed the IntelliSourcingTM approach where we work collaboratively with you to determine which components of your IT capabilities and business processes you can outsource to us. and are delivering high value to our customers year after year. which emphasizes communication. if your challenges in these areas are more pressing. enhanced efficiencies. Improve. making it one of just a handful of organizations in the world assessed at these levels. Around this understanding. Syntel’s Project Management practices are based on the Project Management Institute’s (PMI) Project Management Body of Knowledge. Syntel crafts each solution around its deep understanding of the issues facing mobile telecom firms. we work together to become thought and implementation partners of IT-enabled components of our client’s business strategy—to unlock value from IT and create ITenabled competitive advantage. that we are often ready to structure our services as a fixed-price contract. These services can be brought to bear to revamp your IT architecture and enable your company to introduce new products much faster and cheaper than ever before. on a fixed-price basis. Like the IntelliSourcingTM approach. As you get to speak with some of our key clients. and • Greater situational awareness. and which ones you should continue to keep in-house…” 5. and technology. . PARTNERING WITH SYNTEL Syntel has provided outsourced IT services for over 25 years. enabling it to successfully implement technologies that meet requirements and optimize operations. Our combined expertise in telecom and several other industries give us a unique set of skills and knowledge base to help operators succeed. while minimizing your costs. In fact. For these customers. You can also leverage these services to selectively replace and re-vamp your core CRM and Billing capabilities.issues and technology implications affecting them. and leadership. Its delivery performance is benchmarked against the highest capability standards of this model and achieving Level 5 is the ultimate recognition in the IT industry for the maturity of Syntel’s software processes. Measure. In fact. “Syntel has developed the IntelliSourcingTM approach where we work collaboratively with you to determine which components of your IT capabilities and business processes you can outsource to us. In addition to our IntelliSourcingTM services. This means Syntel’s solutions have been proven to deliver: • Faster project timelines. As an integral part of this methodology. Commitment to Quality Sets Syntel Apart Any successful corporation understands that the quality and dedication of the people behind the processes and technology are what stands between success and failure. Most of Syntel’s Project Managers are PMI-certified. Control— framework to guide process improvement. to maximize your business capabilities. The combination of our IntelliSourcingTM. so you can strengthen your competitive position in your respective market. Syntel’s Global Development Centers in India are assessed at both ISO 9001 and Level 5 of the SEI CMMI (Carnegie Mellon Software Engineering Institute Capability Maturity Model). and impacts its people. • Reduced risks. and all project managers are leaders empowered by Syntel to act in the best interest of the customer’s success. and which ones you should continue to keep in-house.

SYNTEL 525 v i s i t S y n t e l ’ s w e b s i t e a t w w w . as well as e-Business development and integration.3503 info@syntelinc. increasing the efficiency of how complex projects are delivered. Syntel's global approach also makes a significant and positive impact on speed-to-market. s y n t e l i n c . c o m . Founded in 1980. MI 48083 phone 248. complex application development. We maximize outsourcing investments through an onsite/offshore Global Delivery Service. management. product engineering. and quality. data warehousing.about SYNTEL: Syntel provides custom outsourcing solutions to Global 2000 corporations. budgets.619. Big Beaver. We deploy a custom delivery model that is a seamless extension of your organization to fit your business goals and a proprietary knowledge transfer methodology to guarantee knowledge continuity. Syntel's portfolio of services includes BPO. CRM. and ERP. and enterprise application integration services. wireless solutions. Third Floor Troy.