DGAP-News: CSG
CSG and Analysys Mason Study Reveals Growth Opportunities and Potential Pitfalls Facing Communications Service Providers Post COVID-19

08.07.2021 / 14:30
The issuer is solely responsible for the content of this announcement.


DENVER, July 8, 2021 - CSG(R) (NASDAQ: CSGS) and Analysys Mason today released the results from their research collaboration examining how well-positioned communications service providers (CSPs) are to meet future enterprise demand for communications and IT services post COVID-19. Key to the report was the finding that a significant 80+% of the largest global enterprises surveyed will consider buying edge, 5G-slicing and private network services within the next five years. Though opportunities abound, disparities between CSP and enterprise views on the importance of technology solutions and billing and invoicing for supplier selection could lead many CSPs to fall short on capitalizing on the post-pandemic economy.

The report - Large Enterprises' Demand for Communications and IT services - surveyed 16 CSPs and more than 200 multinational corporations between February and May 2021. The report focused on three core areas: identifying changing patterns of enterprise demand for communications and IT services; the opportunity for CSPs; and the role of billing and invoicing.

Looking more closely at the findings, 92% of enterprise respondents have accelerated their plans to use more IoT, security, cloud and unified communication services. Though connectivity still accounts for the majority of current revenue for CSPs from large enterprises, cloud, security, edge and IoT services have come out on top as the main drivers of future revenue growth. In fact, 66% of enterprises surveyed expect to increase cloud services spending in the next 12 months, reflecting the growing importance of the cloud for business continuity.

'There is significant appetite among enterprises to buy additional IT services from their main communications provider,' said Catherine Hammond, principal analyst, Analysys Mason. 'Up to 50% of enterprises today say they already buy cloud, security and IoT services from their main CSP and another 30% would consider buying these services from their CSP in future. This poses an opportunity for CSPs to continue investing in leading edge technologies that not only broaden their portfolio but enable them to deliver a one-stop-shop to meet enterprise IT needs.'

'5G, cloud and IoT are disrupting the CSP market in profound ways,' said Ken Kennedy, COO and global head of revenue management and digital monetization for CSG. 'It's no longer purely about voice and data. Today's enterprises look to their communications provider to deliver a broad ecosystem of products and services that will allow them to unleash the full potential of their business. To deliver on this promise, CSPs need to modernize their technology stacks to create scalable processes that enable them to bring new products and services to market faster and lead to new revenue streams.'

Additional key report findings include:

  • CSP revenue from IT services is increasing, but not as rapidly as enterprises are increasing their IT spend. This suggests that the CSP share of this spend is falling. Only a quarter of CSPs surveyed report selling services other than voice and data connectivity to the majority of their enterprise customers.
  • Enterprises rated the importance of technical solutions in supplier selection significantly higher than CSPs at 4.4 vs 4.1 on a scale of 1 to 5. This disparity could be a limiting factor that impacts the number of enterprises choosing to buy more IT services from CSPs if CSPs don't continue to invest in broadening their products and services portfolio.
  • More than 60% of enterprises reported using at least three different suppliers for their core communications services with nearly all enterprises expressing the desire to reduce this number. The most common reason (69%) cited for multiple suppliers was the need for additional services, suggesting an opportunity for suppliers with a wide portfolio to upsell add-on services.
  • Billing and invoicing are considered to be very important in supplier selection by many enterprises - more so than by CSPs. 77% of enterprises rated it as very or somewhat important as compared to only 58% of CSPs. This gap could lead to customer churn as poor billing and invoicing was cited by 21% of enterprises as a reason for not renewing their contract.
  • The proliferation of cloud and 'as-a-service' models is creating demand for more flexible billing, and this trend is only likely to increase in future. Many CSPs currently use work-around solutions for new services, which is unsustainable. Automation will be key for CSPs to scale and grow for the future.

For more insights into enterprise trends impacting CSPs and to view the full report, visit https://www.csgi.com/resources/large-enterprises-demand-for-communications-and-it-services-survey-results-2021/.

About CSG

For more than 35 years, CSG has simplified the complexity of business, delivering innovative customer engagement solutions that help companies acquire, monetize, engage and retain customers. Operating across more than 120 countries worldwide, CSG manages billions of critical customer interactions annually, and its award-winning suite of software and services allow companies across dozens of industries to tackle their biggest business challenges and thrive in an ever-changing marketplace. CSG is the trusted provider for driving digital innovation for hundreds of leading global brands, including Airtel Africa, América Móvil, AT&T, Charter Communications, Comcast, DISH, Formula 1, Hutchison 3 Indonesia, Inmarsat, Mastercard, Maximus, Microsoft, Mobily, MTN, New Leaf Service Contracts, State of California DMV, TalkTalk and Telstra. To learn more, visit our website at csgi.com and connect with us on LinkedIn and Twitter.

Copyright (c) 2021 CSG Systems International, Inc. and/or its affiliates ('CSG'). All rights reserved. CSG(R) is a registered trademark of CSG Systems International, Inc. All third-party trademarks, service marks, and/or product names which are referenced in this document are the property of their respective owners, and all rights therein are reserved.

Contacts:

Tammy Hovey

Global / North America / Asia-Pacific Public Relations

CSG

+1 (917) 520-2751

tammy.hovey@csgi.com

Kristine Østergaard

CSG

Europe / Middle East / Africa Public Relations

+44 (0)75 0051 8412

kristine.ostergaard@csgi.com

John Rea

Investor Relations

CSG

+1 (210) 687 4409

john.rea@csgi.com

Contact Details

CSG

Tammy Hovey

+1 917-520-2751

tammy.hovey@csgi.com

Company Website

https://www.csgi.com


News Source: News Direct


08.07.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: CSG
United States
ISIN: US1263491094
EQS News ID: 1216865

 
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1216865  08.07.2021 

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