Success factors for choosing Service Partners for business expansion. A Tata Communications white paper

Transcription

1 Success factors for choosing Service Partners for business expansion A white paper

2 Contents 3 EXECUTIVE SUMMARY 4 WHY BUSINESS SERVICE PARTNERING IS THE PREFERRED SOLUTION FOR EXPANSION 5 A CHECKLIST FOR SERVICE PARTNER SUCCESS GLOBAL FOOTPRINT EXPANSION LOCAL PRESENCE EXPERTISE NEW SERVICE EXPANSION CUSTOMER SATISFACTION 10 THE BOTTOM LINE 2

3 Executive summary Once the decision has been made to forgo the costly and time consuming risks of investing large CAPEX and OPEX resources in building-out new services and network coverage, and you have decided to partner with other providers to expand your business, you should ask the following questions of any potential partner(s): Can the partner deliver an extensive global and regional access network for expanding into your target market? Does the potential partner have the local technical knowledge and expertise, as well as experience with regulatory and compliance rules that you can leverage? Does the partner have the capacity and capabilities for introducing value-added services and new technology quickly? Can the partner deliver the quality, end-to-end customer experience that your customers expect from your organisation? 3

4 Why business service partnering is the preferred solution for expansion When Service Providers (SPs) look to expand their revenue base, retain customers with greater global reach and advanced network services, many may be tempted to make capital and investments in building out their networks to new markets and regions. This can be a risky undertaking. Most underestimate not only the cost of this new infrastructure, but also the cost of maintenance, regulatory requirements, and the uncertainties of market forces in these new markets. Another critical factor often overlooked in the build-out scenario is the time it takes to bring these new markets and services online to their customers. Delays can lead to lost business and cost over-runs. For all these reasons, the most agile and innovative SPs have begun to partner with SPs in other regions to expand their reach and service capabilities with far less risk and greater reward. Patching together agreements with multiple Service Provider partners to serve customers has a number of drawbacks, however, including: Negotiating, maintaining, and sustaining multiple contracts Inconsistent services, SLAs, and processes across multiple vendors Disparate governance, billing, and reporting When you add local compliance and regulatory demands, the potential loss of brand identity in the new region, and the potential of being locked into long-term contracts in unproven markets, the risks become even greater. Therefore, when you take into account all these factors, your options are clear: you can cobble together a variety of partners in many regions and countries, or choose a service provider that already has infrastructure, partnerships, and expertise in as many regions and countries as possible. When you factor in the costs of managing multiple partners, contracts, billing, disparate services, and support, it becomes immediately apparent that the fewer partnerships you manage, the better. An increasing number of carriers have accepted that partnering enables them to broaden their service portfolios, increase network reach, and respond more quickly to changing customer requirements than the alternatives of in-house development or mergers and acquisition Partnering for Wholesale Success, David James, Principal Analyst Wholesale Telecoms, Ovum,

5 A checklist for Service Partner success The following is a comprehensive and risk-averse guide for evaluating potential service partners. Use it to thoroughly research and interview potential partners. Global footprint expansion Global reach For optimum results, the potential partner should own and have in place mature, reliable global subsea and terrestrial cable networks. A partner with these assets already in place has greater scalability, control, and management capabilities to leverage. Good questions to ask potential partners are: What established and emerging markets does the partner cover? How quickly can the partner provide service in these regions and markets? What is the breadth and depth of coverage offered in specific markets and will the partner provide the service quality your customers demand? Does the partner own and maintain the infrastructure? Additional challenges and opportunities in new markets When delivering services to an MNC customer in an emerging market, Service Providers face both opportunity and risk, especially if it is the first time entering a new market. Many partners may require long-term commitments from the SP, or have extensive set-up and maintenance contracts. Meanwhile, the SP s customer base may not grow enough to support the investment. Therefore, SPs need to know if its potential emerging-market partner can provide the following: Does the partner deliver cost-effective on-boarding of customers? What are its cost structures and contract commitments? Can the SP easily add and/or remove service within a market with little or no cost or contract renegotiation? Build-operate-transfer options Many SPs will prefer to enter new markets gradually, outsourcing all operations to the partner but eventually taking over the entire operation once the market has solidified and proven to be a long-term opportunity. This may run contrary to many partner business models. Therefore, SPs should examine the following options in such a build-operate-transfer model: Can the partner assist in designing and initially operating the new-market systems? Will the partner provide assistance not only with service delivery assurance but also help in establishing a local SP presence in the market? Can the partner operate the service until the SP is knowledgeable and capable of taking over the service with a smooth and seamless transfer? 5

6 Local presence expertise Local presence Service Providers should select a partner who has a long-standing, established local presence in local and emerging markets for many years. Having the local knowledge and experience in these markets is a critical success factor for turning up services quickly for the SP and its customers. Additionally, the ideal partner should be evaluated based upon the following: Can the partner manage the relationships across local providers to ensure cost-effective service delivery quality and SLAs? Does the partner have an established and mature in-country infrastructure, network access, and multiple options that meet the SP s specific service requirements? Regulatory management In order to do business in new markets, navigating the regulatory landscape can be very difficult, time-consuming, and costly. This is especially true for entering emerging markets. Service providers should ask any potential partner the following when contemplating regulatory issues: Does the partner have thorough, local knowledge of the political and regulatory environment? Can it assist the SP in establishing services quickly by creating unique commercial models under the partner s licenses and authorisations? White label options for building SP brand identity All Service Providers benefit when their brand is visible, positive, and front and centre in all the markets they serve, regardless of locality. Potential partners should offer the following brand-building capabilities: Does the partner have a genuine white-label program that comes complete with processes for business model definition? Can it offer expertise in partnership strategy, marketing, and on-boarding using your brand identity? Will it provide quality, SP-branded support to its customers 24x7? 6

7 New service expansion Quick time-to-market service Rather than risk first-mover advantage by delivering new service through a less than capable partner, SPs should ask the potential SP partners the following: Can the partner deliver services quickly and easily for the SP s customers? Does the partner provide a dedicated project manager and regular status checks during the service implementation and delivery? Can the SP s customers upgrade service cost-effectively? On-demand services The ability to deliver specific services to customers quickly gives SPs an edge over its competition. Meanwhile, they should avoid the capital and operating risks of developing and maintaining these on-demand customer requirements. If SPs entrust their business to a partner to streamline operations and deliver superior customer service, they should ask the following: Can the potential partner provide on-demand services quickly and reliably? Can the SP upgrade services as customers demand without service impact? Does the partner have the capacity to handle sudden or seasonal surges in service demands? Access to cutting edge technology Providing a wealth of service offerings and the latest technology will increase customer loyalty and attract even more new customers. To enhance the Service Provider s image and capabilities, partnering with a service provider with a depth of products and value-add services enhances the SP s brand and retains more customers. Service Providers should make certain any potential partner has the ability to not only service customers today, but can also deliver new capabilities to future proof their relationship: Can the partner deliver more value-added services and greater innovation to support growing enterprise customer needs? Do they already provide the latest technology and services that will retain and attract MNC customers? How quickly and seamlessly can the partner add these new technologies and service to the SPs portfolio? 7

8 Customer satisfaction Comprehensive service support Poor or inconsistent support will drive away customers and tarnish a Service Provider s brand. Support does not stop at trouble-ticket and the timely resolution of technical issues. SPs should ask potential partners if they can provide the following support infrastructure for its customers, regardless of location: Can the partner deliver 24x7, consistent support, regardless of locality, especially in emerging markets? Does the partner provide training, up-selling opportunities, and proactive service monitoring? Can the partner provide marketing and business development expertise, especially in emerging and unfamiliar foreign markets? Does the partner deliver back-end engineering, integration and professional services? End-to-end positive customer experience Service Providers should make certain a partner possesses the customer-facing experience that delivers the same level of customer satisfaction that the Service Provider would expect from their own organization. Therefore, it is imperative that any partner consistently provide these pillars of positive customer experience to best represent and enhance the Service Provider s brand and protect its markets: Channel management Marketing: Localized, cultural-centric marketing materials and strategies Up-selling and value-add opportunities Full SP branding capabilities from end-to-end Third-party managment: Seamlessly leverage existing partner relationships One-stop billing and governance Full regulatory and licensing management in multiple markets 8

9 Operations and product management Field support: Including last mile and customer premises engagement Training of customer staff when required Premises equipment maintenance and upgrades Local ground support recruitment and training Service support: Visibility into all aspects of network operations by the SP Non-disruptive back-end upgrades and enhancements Pro-active service monitoring and troubleshooting Proven track record for reliability and quality of service Customer service Technical support: Efficient, timely customer-facing support SP-branded support personnel Options for partner or SP frontline support engagement Quick and effective problem escalation and resolution Service level: Consistent SLAs across multiple regions for each MNC Full range of SLA options for flexible and cost-effective customer demands Detailed SLA reporting and monitoring Quick to market: Tested and mature service offerings already in place Established presence in new and emerging markets Quick deployment of new technologies and services Widest range of fully developed customer service options 9

10 The bottom line Once you have tallied the checklist, you will have a greater sense of how to best partner when expanding your service into new markets and adding additional services to your portfolio. As customers demand access to more regions and global business centres and require the latest technologies and performance to succeed, they will naturally migrate to Service Providers that can deliver products quickly and reliably. Your partnership selection is crucial to customer retention, increased revenues, and building a broader customer base. 10

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12 Success factors for choosing Service Partners for business expansion India Limited Plots C21 and C36 Block G, Bandra Kurla Complex Bandra (East) Mumbai Singapore International Pte. Ltd. Exchange 35 Tai Seng Street, #06-01 Singapore Registration Number: G United Kingdom (UK) Limited 1st Floor, 20 Old Bailey London EC4M 7 AN Registered in England and Wales Registered number France 131 Avenue Charles de Gaulle Neuilly sur Seine France Hong Kong (Hong Kong) Limited 2402 Bank of America Tower 12 Harcourt Road Central Canada (Canada) Limited 1555 Rue Carrie-Derick Montreal, Quebec H3C 6W2 United States (America) Inc Dulles Corner Boulevard, Suite 700 Herndon, VA Germany Deutschland GmbH Bettinastraße Frankfurt Deutschland GmbH Domicile: Frankfurt am Main Registry Court: AG Frankfurt am Main Commercial Register number: HRB Bettinasr. 30, Frankfurt am Main For more information about our Partner Services please visit or GCS-Marketing@tatacommunications.com About is a leading global provider of a new world of communications. With a leadership position in emerging markets, leverages its advanced solutions capabilities and domain expertise across its global and pan-india network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers. The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 190+ countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide. depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in South Africa (Neotel), Sri Lanka ( Lanka Limited) and Nepal (United Telecom Limited). Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange (NYSE: TCL) Ltd. All Rights Reserved. and the Tata logo are trademarks or registered trademarks of Tata Sons Ltd. in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owner 12