Since early 2008 the global economy has been undergoing a substantial crisis. Recent industry studies on the development of the telecommunication markets point to a sustained downturn in the market as a whole for 2008. Revenues will decrease in 2009, essentially as a result of competition-induced price cuts in fixed and mobile networks. On the other hand, industry associations assume that the financial market crisis will affect the telecommunications sector only slightly because communication services are seen to be a primary need that customers are ready to pay for, particularly if they are innovative and even offer cost-reduction opportunities.
Nevertheless, while the telecommunication services sector might prove to have some resilience to the economic crisis, most telecommunication equipment manufacturers will continue to face severe challenges. Handset shipments have historically been seriously affected by crises, and this may also put pressure on suppliers. Industry experts expect providers of cable network equipment to be confronted with even stronger competition, leading to further margin erosions, battles for innovation leadership, and ongoing consolidation.
What skills are needed now?
Market players will need top executives who can successfully lead companies in these difficult times. Having the right managers on board will be crucial to operators, services providers, network operators, and equipment providers in order to harness opportunities from the economic situation.
Faced with a severe economic and financial crisis, most telecommunications companies have reacted quite quickly, streamlining operations with strict cost management measures across countries. However, while one-time cost reductions may create short-lived benefits, they are unlikely to achieve the medium- to long-term strategies required to secure future profits.
Innovation seems to be the buzz-word in traditional telecommunication companies, so there will be a demand for specialists with engineering and development expertise. In addition, there will be a growing demand for sales and marketing experts who are able to generate growth in a highly competitive environment by creating innovative approaches to attract new customers wherever possible. While some telecommunication carriers are still doing exceptionally well in some of the emerging markets in Asia, Africa or in the Middle East, these companies will have a continuous need for both national and international managers who can bring special telecommunications expertise and experience to these countries.
Whatever the challenges ahead are, there is one single source that creates competitive advantage around the globe for all telecommunications companies: the quality of their people and the management culture those people are working in.
How can Boyen Haddin support the telecommunications industry?
Through our firm-wide network, we have access to managers across the telecommunications industry, as well as in related industries such as industrial and consumer products, and financial and business services. Boyen Haddin consultants have a wide network of contacts in the telecommunication industry segments and can help clients get together not only with managers but also as interest groups. With ongoing consolidation in the telecommunications industry, people will be on the move, and talent mapping may be of particular interest, in order to identify top talent in transition. In addition, Boyen Haddin can help with management appraisals, external benchmarking, and team effectiveness reviews.
How we operate
Boyen Haddin helps its clients with special industry expertise, knowledge of, and access to top management talents in the telecommunications industry.
.