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Telecom Industry Business Outlook and Procurement Report H1 2017

Telecom Industry Business Outlook and Procurement Report H1 2017

Summary

GlobalData’s Telecom Industry Business Outlook and Procurement Report H1 2017, examines executives’ opinion on the business outlook and procurement activities over July 2017-December 2017. Organizations can know about key business priorities, supplier price variations, changes in capital expenditure, and organizations’ perspective on e-procurement. Additionally, it provides information categorized by region and company type.

Amid growing pricing pressure, cost containment, and rising competition within the telecom industry, companies are planning to increase their focus on business expansion in existing market, new product development, and improving operational efficiency. Mergers and acquisitions are expected to increase within the telecom industry with emerging markets such as China, India, and Brazil offering prominent growth opportunities. Additionally, global telecom industry business executives from all company sizes expect a surge in capital expenditure on new product development over the next six months.

What else does this report offer?

  • Key business priorities: examines the telecom companies’ important priorities for July 2017-December 2017
  • Emerging and developed markets: provides information about key emerging and developed markets that will offer the most growth over the next six months
  • Change in M&A activity: analyzes telecom industry executives’ opinion on changes in merger and acquisition activity globally
  • Business concerns: identifies major business concerns that are likely to impact manufacturers and suppliers
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally
  • Change in procurement activities: evaluates how procurement activities will change in the telecom industry over the next six months
  • Procurement budget outlook: projects procurement budget allocation along with changes in procurement expenditure over July 2017-December 2017
  • Supplier prices outlook: determines the expected change in supplier prices over July 2017-December 2017
  • E-procurement: identifies executives’ perspective towards e-procurement within the telecom industry
Scope
  • Respondents consider expanding in current markets and improving operational efficiency as key priorities during July 2017-December 2017
  • Survey analysis reveals that 28% of respondents from small companies expect no change in the current level of M&A activity during the next six months
  • Capital expenditure on new product development and IT infrastructure development is expected to increase over the next six months
  • Overall, 14% of executives anticipate their global procurement budget will range between US$1 million and US$500 million over the next six months
  • In total, 24% of executives who operate in Europe indicate limited deployment of e-procurement within their organizations
Reasons to buy
  • Highlights key business priorities thus helping telecom companies to realign business strategy
  • Develop or adjust business expansion plans by using significant growth offering emerging and developed markets
  • Make changes in procurement budget allocations through procurement budget projections anticipated by executives for July 2017-December 2017
  • Implement effective price management by viewing supplier price variations highlighted for the next six months.


  • Section 1: INTRODUCTION
    • Acronyms and definitions
    • Methodology and Sample Size
    • Respondent profile
  • Section 2: GLOBAL BUSINESS OUTLOOK
    • GLOBAL BUSINESS OUTLOOK: KEY TAKEOUTS
    • Respondents consider expanding in current markets and improving operational efficiency as key priorities over the next six months
    • Respondents operating in Asia-Pacific consider to improve operational efficiency in their organizations over the next six months
    • Overall, 59% of respondents from small companies identified new product development, as the leading priority
    • The leading emerging markets that are expected to offer the most opportunities for global telecom industry growth are India, China, and Brazil
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Overall)
    • The maximum number of respondents, who operate in Asia-Pacific noted China to offer the most industry growth over the next six months
    • 36% of industry executives from small companies indicate Mexico to offer industry growth in the emerging markets
    • Overall, the US, the UK and Germany are considered important markets for growth among developed countries
      • Table Which developed markets are expected to offer significant growth opportunities for your industry over the next six months? (Overall)
    • The US, Canada and the UK are among the top countries identified by respondents from North America for significant growth potential over the next six months
    • The lowest number of respondents from large companies expect Canada and France to exhibit prosperous growth during the next six months
    • Overall, 60% of respondents anticipate either a significant increase or increase in M&A activity during Jul 2017–Dec 2017
    • More than 54% of respondents in Europe expect an increase in M&A activity over the next six months
    • Survey analysis reveals that 28% of respondents from small companies expect no change in the current level of M&A activity during the next six months
    • Cost containment is projected to be the major concern in Telecom industry over the next six months
    • Over the next six months, the majority of executives from Asia-Pacific indicate that market uncertainty is projected to become the key concern
    • The maximum percentage of respondents from large and medium-sized companies are apprehensive about reducing debt and bad debt during the next six months
    • Capital expenditure on new product development, and IT infrastructure development are expected to increase over the next six months
    • Respondents operating in Asia-Pacific expect to direct more of their capital expenditure towards new facility acquisition in comparison to other regions
    • Among all the companies size, the majority of respondent anticipate to increase their capital expenditure towards the new product development
  • Section 3: PROCUREMENT APPROACHES AND STRATEGIES
    • PROCUREMENT APPROACHES AND STRATEGIES: KEY TAKEOUTS
    • Respondents intend to reduce internal operating costs over the next six months
      • Table In what ways do you expect your procurement resources and objectives to change over the next six months? (Overall)
    • 64% of respondents who operate in North America anticipate their organizations to increase use of technology over the next six months
    • Overall, 82% of executives from medium-sized companies highlight plans to reduce operating costs during the next six months
    • 41% of executives anticipate the procurement of IT services to increase somewhat over the next six months
    • The lowest numbers of respondents who operate in North America expect an increase in capital equipment purchases
    • The majority of respondents from small and large companies express more focus on the procurement of IT services in the coming six months
    • Overall, 14% of executives anticipate their global procurement budget will range between US$1 million–US$500 million over the next six months
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of overall and regional responses)
    • 49% of respondents from small companies expect their procurement budget to be up to US$100,000 during the next six months
    • Procurement expenditure for organizations is expected to increase by an average of 4.8% over the next six months
    • Overall, 32% of executives from large companies anticipate no change in procurement expenditure during the next six months
    • In total, 25% of respondents anticipate that supplier prices are expected to increase somewhat during the next six months
    • Overall, 59% of respondents who operate in North America foresee no change in supplier prices in the coming six months
    • Overall, 45% from medium-sized companies expect supplier prices to increase somewhat during the next six months
    • 31% of industry executives state that limited or generalized deployment of eprocurement within their organizations
    • In total, 24% of executives who operate in Europe indicate limited deployment of eprocurement within their organizations
    • 27% of respondents from medium-sized companies highlight e-procurement within their organizations is in evaluation or pilot use

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