Market Trends of Telecom Expense Management Industry
BFSI Segment is Expected to Gain Significant Traction
- There has been a growing competition among the service providers to improve telecom expense management services available for the BFSI sector, thereby helping them to gain a competitive edge over other end-users. With these solutions, financial institutions and the insurance sector can avail of maximum savings and keep their telecom bills under control. For instance, Cass Information Systems Inc. is helping finance, banking, and insurance enterprises to fully manage their telecoms, including mobility services and BYOD management.
- In addition, the growing mobile and online banking users are boosting the demand for telecom expense management in the Banking Sector. For instance, according to data from a report of Bank of America published in August 2022, Customers of Bank of America are increasingly using the company's highly regarded digital tools to manage their accounts. In July 2022, customers used the business's digital platforms nearly 1 billion times. The company has a record 55 million verified digital customers, which has increased by 5% from last year's numbers.
- Banking clients get the ability to track their telecom costs for individual branches and can also benchmark them against one another. Meanwhile, the insurance clients appreciate the solution's ability to track the total costs assigned to remote employees for clear visibility into remote costs.
- Also, the increasing demand for better mobile applications for banking services and the increased penetration of IoT devices coupled with a shift towards 5G networks, efforts made towards making improved APIs for seamless user experience, and the growing need of telecom operators to monetize their advanced services are also some of the major factors that are anticipated to drive the market growth.
- Moreover, the growing adoption of advanced technologies, along with the increasing applications of mobile internet in day-to-day operations, has fueled the cutting-edge competition among various technological advancements across BFSI in the booming era of LTE and IoT, which may further propel the demand in the market.
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Latin America is Expected to Witness Significant Growth
- The Latin American region is expected to witness significant growth opportunities in the telecom expense management market during the forecast period, primarily owing to the gradual increase in the population using the internet, a growing number of mobile and connected device users, the rising popularity of bring your own device (BYOD) policies among enterprises, and the flourishing IT and telecommunication.
- The existence of a vast number of IT services and product companies, the growing popularity of CYOD and BYOD policies, and enhancing IT and telecom infrastructures may fuel the requirement for efficient telecom expense management products and services.
- In Latin America, the evolution of 4G into 5G is expected to act as a powerful economic growth engine, particularly for enhancing productivity in key vertical sectors. According to GSMA, 4G will continue to be the backbone of the Latin American mobile industry in the near future, accounting for about 70% of total connections by 2025, and the Latin American mobile ecosystem will grow by more than USD 30 billion by 2025.
- Moreover, several governments in Latin America are considering 5G technology as a significant factor in their digital transformation. Hence, governments in the region are making the necessary regulatory changes in spectrum assignment and network deployment rules in order to accelerate the deployment and adoption in their jurisdiction.
- The region is also experiencing a significant shift in the telecom front, where the majority of organizations have migrated their business-critical infrastructure to the cloud, owing to the penetration of hybrid IT API architecture. The healthcare and manufacturing sectors are expected to emerge as prominent adopters of new solutions over the forecast period in order to better manage telecom expenses and offer billing invoices to others.
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