Over 500 Global MNCs Demanding More Service from Telcos- Ovum

A recent survey by global analyst firm Ovum of more than 500 multinational corporations (MNCs) has found that ICT services buyers want much more from their global telecoms service providers when it comes to network performance and customer support.

David Molony, principal analyst at Ovum, suggests that the “big six” telcos with dedicated global enterprise services, AT&T, BT, Orange, T-Systems, Verizon, and Vodafone, are rated hardly any better than the many upstart regional service providers in emerging telecoms markets.

Ovum’s new report, based on its Enterprise Insights survey of ICT decision-makers and influencers, provides analysis of CIOs’ and telecoms managers’ ratings of their primary telecoms operators, where these operators are suppliers of global ICT services.

The respondents were asked to rate their main supplier across a range of performance criteria and their replies indicate the following:

The effective operation and management of an efficient, reliable, and secure global network is still by a distance the most important thing that MNC users want from their telecoms suppliers.

Yet even the top-scoring telco service providers scored poorly on criteria such as problem resolution, geographic coverage, and delivery to SLAs.

The big six need to improve in account management, co-innovation with customers, and delivering value for money, three areas in which their customers gave these suppliers their lowest scores.

Challengers such as Easynet, Interoute, Level 3, Tata Communications, and Telstra recorded some high scores, rewarding their investment efforts in customer service organizations and advanced networking.

“Our research highlights the challengers’ achievements, and we feel it sends a particularly strong message to the big six,” said Molony.  “Global service providers in the telecoms industry should be treating existing contracts as if they are in continuous competitive tender. They should be looking to improve overall service performance across a range of criteria, and not just to address or improve on shortcomings.”

Overall, the big six achieved an average performance rating of 105 in global services, compared to an average score of 104 for all other service providers (maximum score 200).

Among the largest telcos in global services, BT Global Services and AT&T Business Solutions get the highest ratings from their customers, with T-Systems and Vodafone Global Enterprise reaching the next-best level of performance rating.

“AT&T and BT might be most satisfied with their ratings, at least in terms of their standings against their immediate tier-1 rivals.

However, all the big six global service providers should be concerned that they do not stand out from the pack that is following them,” concludes Molony.

Ovum’s 2014 Enterprise Insights survey covered a sample of ICT decision-influencers and decision-makers at 2,708 enterprises worldwide, of which 537 were MNCs. MNCs were defined as companies with operations in at least five countries, supported by managed ICT services in more than one region. Of the MNCs, 255 said that they use one of the big six as their primary global provider, with the rest naming other regional or national service providers.

Ovum is a leading global technology research and advisory firm. Through its 180 analysts worldwide it offers expert analysis and strategic insight across the IT, telecoms, and media industries.

Founded in 1985, Ovum has one of the most experienced analyst teams in the industry and is a respected source of guidance for technology business leaders, CIOs, vendors, service providers, and regulators looking for comprehensive, accurate, and insightful market data, research, and consulting.

With 23 offices across six continents, Ovum offers a truly global perspective on technology and media markets and provides thousands of clients with insight including workflow tools, forecasts, surveys, market assessments, technology audits, and opinion.

In 2012, Ovum was jointly named Global Analyst Firm of the Year by the IIAR.