Given the ongoing economic global turmoil, it's not surprising to hear service providers looking for any way to reduce their operating costs. The TM Forum revealed in its latest business intelligence report "Winning in a Shrinking World: Seizing the Opportunities" that service providers took cost cutting actions as the economy started to sour and are now seeing total growth ranges from slightly negative to double-digit positive. Interestingly, emerging markets outperformed developed markets such as North America, Western Europe and Asia Pacific. In developed markets, most service providers saw either flat or low double-digit growth, while in emerging markets service providers saw revenue grow an average of between 10 and 20 percent.
However, Martin Creaner, president and COO of the TM Forum, says that while cost cutting is necessary, service providers should build innovative service sets that will enable them to compete when the economy eventually recovers. "Successful CSPs are focusing on how they can turn the current economic malaise to their advantage," said Creaner in a release. "Playing it safe by just cutting costs will miss today's and tomorrow's opportunities. The winners will be the companies that combine fiscal caution with focused aggression along a strategic path."
For more:
- here's the official release