Much of the development in Indian economy in the last one-decade can be attributed to the exponential growth in India’s Telecom sector. India’s Telecom market is the second largest in the world. It has also played a significant role in reducing the rural-urban digital divide and increasing the transparency of governance through the introduction of e-governance. 2014 was an eventful year for the Telecom industry. There was a lot of positivity around the new government’s Digital India initiative which brings high speed internet connectivity to all villages across the country by 2019. A major thrust of the program is on e-governance as India embarks on the road to becoming a digitally empowered nation. 4G LTE saw a limited roll out in the country but many mobile companies are expected to join the bandwagon this year and release 4G phones. The no. of 4G LTE subscribers will escalate to 10 to 15 million by the end of 2015 as per a report by PwC. India is one of the fastest growing smartphone markets in the world. 18 million new mobile phone users were added in the 3rd quarter of 2014 alone. There has clearly been a massive spike in 3G data use. The market is expected to witness unprecedented growth in the coming years owing to favorable regulation policies by the government and ever-increasing number of subscribers in a country of over a billion.
Another driving force giving fuel to India’s economic growth is the information technology (IT) and Information Technology enabled Services (ITeS) industry. As an indicator of social transformation in India, it has raised India’s reputation on the global platform. The Indian IT Business Process Outsourcing (BPO) sector is growing leaps and bounds, witnessing high levels of activity both onshore and offshore. India is home to 3000 tech start-ups and 300 million Internet users. With increasing internet penetration and booming of the e commerce market, the IT Industry has been generating huge revenues which account for about 7% of the GDP.
Telecom service providers are facing tremendous challenges when it comes to profit margins, high customer churn and competitive rivalry, Not just this, with the ongoing expansion of the mobile ecosystem, coupled with high bandwidth application and services, the value added services segment is also coming under immense pressure.
• Tele-density in rural is an issue which remains to be addressed. The current figures stand at a dismal 15%
• Rural India lacks adequate infrastructure for Telecom services.
• There is a lack of skilled manpower in rural and semi-rural areas. Proper procurement of goods and services is the need of the hour.
• There is an extremely high level of competition for a limited spectrum. New players find it difficult to grab a significant share of the spectrum in the auctioning process. Spectrum allocation needs to be efficient and transparent.
• Efficient procurement of services is a major challenge for the IT sector.
• The IT sector is also grappling with major issues such as losing the inherent outsourcing advantage to Eastern European countries such as Poland, Romania, Hungary and others.
How C1 India adds value?
As Telecom providers cater to a growing nation, Telecom companies are finding it difficult to control costs and monetizing new services. In such a scenario, a centralized online procurement system adds immense value. By working with C1 India, you partner a leader in the e-procurement space. C1 India has been at the forefront of adding value especially when it comes to reducing the pressure on bottom-line and streamlining the procurement process. We have been changing the way some of the leading Telecom and IT firms manage their procurement processes by automating workflows, facilitating online negotiations, reducing procurement timelines, streamlining processes and virtually eliminating paperwork.
As pioneers of the e-procurement space we have worked with Telecom giants such as Aircel, Tata Teleservices limited and IT multinationals such as Tech Mahindra, Genpact, Mahindra Satyam. We programmed a reverse e-auction drive for Tech Mahindra, which is a part of the Mahindra group conglomerate. From auction configuration to BRD document preparation & training international vendors, C1 India team managed the entire project. Aircel, India’s fifth largest and fastest growing GSM mobile service provider, was looking for a vendor for procurement of laptops. We conducted a reverse e-auction which helped them generate 10% in savings. Aircel has been our regular client and on another occasion we helped Aircel secure audit services for 18 circles across India through our reverse e-auction which saw participation by the who’s who of auditing such as Deloitte, KPMG, Ernst & Young. A whopping 50.42% saving on the opening bid price was registered.
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