Telecom operators with greater IT excellence tend to be more cost-efficient with IT spending than their peers. Operators in the top quartile of IT maturity grow revenues at a higher rate of profitability than operators as a whole, with a roughly 15.5 percent net operating profit after tax, compared with 14 percent, note Partner Duarte Begonha and colleagues. Operators with greater IT maturity also demonstrate better customer satisfaction.
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A scatter plot shows the relationship between telecom operators’ IT excellence average score and their IT cost efficiency ratio. The size of each bubble represents the operator’s revenue. The x-axis represents the IT cost efficiency ratio, with lower numbers indicating higher efficiency (more efficient to the left, less efficient to the right). The y-axis represents the IT excellence diagnostic score (average score excluding “IT cost” category, where 1 = low and 5 = high). A dashed line shows a negative correlation (correlation = 0.6) between IT excellence score and IT cost efficiency ratio: operators with higher IT excellence scores tend to be situated in the more efficient portion of the graph, exhibiting lower IT cost efficiency ratios. The plot shows a range of operators, some with high IT excellence scores and high cost efficiency, and others with lower scores and lower cost efficiency. The size of the bubbles indicates that revenue varies across the operators represented.
Note: This image description was completed with the assistance of Writer, a gen AI tool.
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To read the article, see “Transforming telecom tech: How IT excellence drives innovation and cost efficiency,” February 28, 2025.