Telecom Software: Marching Ahead

Marching ahead confidently is the Indian telecom software industry clocking revenues of `25,443 crore in FY12.

Communication service providers (CSPs) are increasingly launching complex service offerings which require enhanced customer care, service assurance, and service fulfillment systems to support them. They prepare to support mobile data growth and content based services. This is being driven by the availability of smartphones, evolution of 3G and 4G rollouts, and a rapid growth of subscribers signing long-term contracts for data services.

Over the last few years, the industry has gained momentum with CSPs investing heavily especially in areas like embedded software, mobile communications, support systems, softwares for a component based element management systems, and network management system for equipment vendors, Machine-to-Machine (M2M), embedded and equipment testing for both wireline and wireless carriers.

Today, the customers are dictating terms in a data-services rich environment. The operators are increasingly realizing that in order to keep their customers happy and satisfied, they will have to continually provide high-quality services at affordable prices.

Hence, this has driven the telecom software industry to march in a direction where the operator's interest lies. Players are offering deals customized to their customer's choice and demand leading to a very healthy and steady growth.

Market Scan

Tech Mahindra again took the lead with 20.9% market share last fiscal. The biggest development for the company was its merger with Mahindra Satyam in the fourth quarter of last fiscal.

Apart from this, Tech M bagged many deals last year. The company was chosen by a leading European telco for managing the operation and delivery of Vendor Access Services (VAS). Tech M was involved in transforming the sales operations system of a leading global telco. Apart from this the company was involved in a multi-year multi-million dollar deal to provide production support for covering customer care and mediation applications for a tier-I operator in North America.

The second leading company in this domain is TCS. According to the company's financial results, one of the largest European telcos has partnered with TCS to restructure their application and infrastructure management services. TCS will help the client transition from their legacy service vendors, re-architect the solution delivery processes, and transform to an end-to-end managed services model.

In another partnership, a leading US insurer has selected TCS in a multi-year program that aims to revamp its policy and customer management application portfolio and drive greater agility in product development, integrated marketing, and customer experience management.

Companies have shown better results in bagging good deals and projects last fiscal.

Wipro won a large contract facilitated by NABARD to provide the total solution and implement CBS in the identified state co-operative banks and central co-operative banks, including providing the required database, middleware, network, project implementation, and project management.

Infosys although showed slight decline in its telecom software division, the company still bagged interesting deals last fiscal. A resources conglomerate with interests in oil and gas, partnered with infosys to build a tablet based business intelligence solution to monitor energy consumption patterns.

An oilfield services company has engaged Infosys to build a mobile asset tracking solution to monitor and manage heavy equipment deployed on the field.

Infosys also created a tablet based sales lead management solution for senior executives of a Canada based insurer.

For an American retailer, Infosys is creating a gift catalogue application, combining the power of mobile and social media allowing its customers to choose products and share it as gift wish lists with their friend circles.

HCL on the other hand entered into an engagement with a leading state government road authority to develop a smarter, integrated, and inter-connected traffic management system. According to HCL, this enterprise standard traffic information system is the first of its kind in the APAC region.

HCL and Cisco announced the creation of vertical solutions jointly. First of these solutions was targeted at the financial services industry to improve the end-customer experience. HCL has also been chosen by a US based software product company for a multi-year engagement to enable reporting capabilities for its enterprise services business.

Sasken also showed improved performance last fiscal. The company added close to 27 customers to their existing customer base.

What Will Drive Growth?

In a highly competitive market, the operators are looking for solutions which will help them micro-segment the customers.

The biggest increase in spending will be seen in mobility, compared to moderate growth for broadband and business segments. The fastest growing segments of the market will be service delivery platforms and customer care. CSPs strongly value the improved support they provide to their customers and the automation that minimizes the cost of support.