3 minute read by Taylor Wilson
Solutions Consultant at Penta Consulting
Inflation is a fact of life for businesses in every sector, and telecoms firms are no exception. As the cost of goods and services continues to rise, telecoms firms are under pressure to find ways to cut costs and maintain profitability. One option that many are turning to is third-party support contracts.
Third-party support contracts provide telecoms companies with access to expert support services without the high costs associated with maintaining an in-house team. By outsourcing these services to a third-party provider, telecoms firms can reduce costs, free up internal resources, and focus on core business activities.
However, as inflation rates rise, the costs of these contracts are also increasing. This is because third-party support providers also face rising costs for labour, materials, and other expenses. To balance the need for cost-cutting with the need for quality support, telecoms firms should take a strategic approach to third-party support contracts.
“The global chip shortage has caused a ripple effect throughout the tech industry, leading to delays in product releases and creating a bottleneck in supply chains. While companies have been forced to adjust their production schedules, the effects of the shortage may potentially reverberate for years to come.” – Tech Industry Magazine
The first step is to carefully evaluate the services provided by third-party support providers. This means looking beyond the basic scope of services to understand the level of expertise and quality of support provided. For example, does the provider have a deep understanding of your business and the telecoms industry as a whole? Do they have a track record of providing reliable, responsive support services? By asking these questions and carefully reviewing the terms of the contract, you can ensure that you’re getting the best possible value for your money.
Another option is to negotiate with your third-party support provider to find ways to reduce costs. This could include adjusting the scope of services provided, negotiating a lower rate for the same level of support, or utilising synergies between other operators. By working closely with your support provider, you can find creative solutions that help you cut costs without sacrificing quality.
It’s also important to consider the long-term impact of support contracts on your business. While cutting costs may be a priority in the short term, it’s important to ensure that you’re not sacrificing long-term growth and profitability. This means choosing a support provider that can help you achieve your business goals over the long term, rather than simply providing basic support services at the lowest possible cost.
To do this, you should look for a support provider that has a deep understanding of your business and the telecoms industry as a whole. This provider should offer a range of services that can help you achieve your goals. They should also be committed to providing responsive, reliable support services that meet your unique needs and requirements.
In conclusion, rising inflation rates are putting pressure on telecoms firms to cut costs wherever possible. Third-party support contracts offer a cost-effective solution for accessing expert support services, but it’s important to take a strategic approach to these contracts. By carefully evaluating the services provided by third-party support providers, negotiating to find ways to reduce costs, and considering the long-term impact of support contracts on your business, you can find a support provider that can help you achieve your goals over the long term. With the right support in place, telecoms firms can navigate the challenges of rising inflation rates and continue to grow and thrive in an increasingly competitive marketplace.
I’d be happy to discuss the subject further and find out how Penta could help your business thrive in a rapidly changing world. Please email [email protected] to find out more.