IT contractors should experience boom in 2016

Tuesday 12 January 2016

A new report suggests that specialising in IT could be a lucrative option in 2016, which is positive news for contractors in this area and points to good growth opportunities in the next 12 months.

Published by global analyst firm Ovum, '2016 Trends to Watch: Telecoms Operations and IT' analysed current trends in the telecom industry and how recent developments are likely to impact the industry and demand. It found that nearly two-thirds (65 per cent) of telecommunication companies plan to increase their IT spend in 2016.

In addition, nearly a third (32 per cent) expect to see this grow by at least six per cent, which could have a significant impact on contractors with these specialist services. However, the report highlighted a number of shifts in the type of IT work that is expected to experience a boom in 2016.

Like many industries, an increasing popularity of digital services is likely to influence the IT industry, meaning contractors will need to adjust their offering if necessary to reap any benefit.

Analyst and author of the report Chantel Cary said this shift of the telecoms industry towards digital delivery of services means that a need for "agile operating models" will be driving IT trends throughout 2016.

“Particularly transformation projects aimed at improving the BSS stack to enable restructuring of tariff systems, adding billing convergence and real-time charging capabilities, and integrating billing systems with customer management systems,” Ms Cary said.

Over the next 12 months, the report predicts that telecom companies will prioritise consumer experience, with ensuring the user journey is as personalised as possible being a significant factor. In a bid to achieve this goal, it predicts that firms will be looking to increase their spend in analytics tools.

The research from Ovum also suggests that BSS transformation projects to improve operational efficiency, network performance, and more effective delivery models will also be key drivers in 2016.

A shift towards cloud delivery methods is also expected from firms in this industry, the report predicts, as many companies move away from physical IT systems.

“In fact, 59 per cent of the telcos we spoke to said that they plan to adopt cloud delivery for at least one of their IT systems in 2016,” said Ms Cary.

However, the global analysts warn that, although telecom companies are looking to increase their spend in IT, they will still be conscious of their budgets. This may mean that projects that can offer quick return-on-investment (ROI) are likely to be preferred.

By Victoria McDonnell

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