The day to day complexities agents navigate can be a hurdle for CSPs to achieve the world-class customer experience they want, especially with WFH as the current prevailing model.
5 challenges telco contact center agents face that undermine customer experience
As exhibited in the TM Forum Cognitive Contact Center Catalyst, CSPs are now adopting RPA and AI to automate prompts that can help agents manage the deluge of data, communicate with customers and to automate processes like ordering, appointment booking and service recovery.
Many enterprise organizations are much further down the road than CSPs regarding the adoption of public cloud, but this is because CSPs are fundamentally different to all other types of technology-led companies. Also, there is a distinction to be made between CSPs’ old and new motives for cloudification which is integral to the telecoms cloud story.
The traditional telco was not overly constrained by capital resources, and had a stable core business model and little need for radical innovation. Those revenues and margins are increasingly threatened to the point that fundamental change is necessary to diversify CSP businesses and generate new, large revenue streams from non-traditional services.
In the decade after 2010, some CSPs experimented with the ‘lift and shift’ approach to migrating applications that were not designed for the cloud into private or hybrid cloud to save CapEx and OpEx. They quickly realized that the expected savings might not be realized. Another consideration in these early experiments was that little, if any, commercial-off-the-shelf software that could be considered cloud native, so CSPs began working more closely with technology providers to address this fundamental shift. Today there is still much to do because of the scale of the task, and CSPs’ need to get as good a return on investment as possible from their old infrastructure. In a recent survey for TM Forum’s Digital Transformation Tracker 5, we asked several hundred CSPs about the migration of their business and operations to cloud. The graph above shows that the move is underway, but only a small percentage of IT workloads have been migrated to the public cloud (although public cloud does not cover all cloud deployment models, it is a good measure of overall cloud migration. The timeline for cloud to become the dominant installed model of telecoms software is long.
In most conversations we had with CSPs for this research, it became evident that the growth of cloud deployments will continue, but some IT workloads will never be migrated to a cloud model. CSPs are generally taking a pragmatic approach to this realization and are developing a hybrid long-term strategy, migrating functions that have obvious cloud native futures and building a solid interoperability plan for the rest.
However, in the same survey close to 20% of operator respondents state they do not have a clear preference for a cloud native approach which is more than expected. The group of participants was selected widely from many different sizes of operators, we often see Tier 3 and 4 CSPs letting early adopter Tier 1’s establish best practice before making their own investments. This result could be symptomatic of that pause before smaller operators establish their own cloud strategy.
The prospects of new revenue opportunities for CSPs in the 2020’s are brighter than they have been for decades with investments in 5G and IoT lighting the path to new service models and use cases across previously untapped industry verticals.
The promising economics of 5G and IoT are driving the transformation of most CSPs and means they are not mirroring legacy data center deployments in the cloud but building something entirely new. This new build is not only for the CSPs’ use because the new business and operational models are based on collaborative, multi-partner business models in a B2B2X setting that involves consumers, businesses, government agencies and other entities.
Now there is economic motivation for those CSPs investing in cloud native software because it can:
Most CSPs are adopting a cloud native approach to new and future OSS/BSS procurements. Aligned with that, success stories are appearing across the industry from smaller, single-country CSPs and operators. In additional to this, service providers that are providing connectivity solutions to industry-specific customers (for example, private networks for airports) are realizing the benefit of cloud native deployment models for their custom networks, operational and even retail environments. As such it is important to see the migration to cloud as a much wider macro-trend than multinational mobile network operator groups experimenting with new technology. We spoke to an African operator that has many hundreds of product categories and is planning to move a large number of its workloads to a public cloud set-up. The main driver for this is to increase competitive agility as the company adds subscribers and modernizes the product line, and most of all, to speed up operations for the full portfolio. The first workloads to be addressed are in revenue management for billing, rating, charging, and partner settlement. The company has fewer than 10 million subscribers so it does not have the complex organizational structure of a large multi-country group where a category of products or line of business can be addressed at once based on strategic value perceived by its shareholders.