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MWC 2025: Communications Service Providers Missing Out on $24B of B2B Revenue Due to Inefficiencies, Fragmented Systems, and Skill Gaps across Customer Lifecycle, Amdocs Research Finds
Survey of more than 200 telco B2B leaders reveals over half of bids for enterprise deals contain errors or omissions and one in five requests for proposals are not answered in time, with up to $170B in new business or renewals at risk annually
JERSEY CITY, NJ / ACCESS Newswire / February 28, 2025 / Communications service providers (CSPs)are leaving significant B2B revenue untapped due to process inefficiencies, fragmented systems, and skill gaps according to new research conducted by Omdia on behalf of Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies.
The research, titled "Money on the Table: The Truth about Telco B2B (And How to Fix It)," reveals that service providers are missing out on $24 billion annually due to problems with their commercial processes. This finding is based on enterprise revenues disclosed by CSPs representing 70% of the total market.
Globally, this equates to 7% of global telco enterprise revenues - a market that will exceed half a trillion dollars in 2025.
The study found that up to $170 billion in global telco revenue is at risk annually during renewal and new business deals.
The survey highlights critical pain points in sales and renewal processes:
Over 50% of bids contain errors or omissions, delaying deal closure
One in five requests for proposals (RFPs) are not answered in time due to internal inefficiencies
40% of CSPs cannot correlate data across internal systems during the renewals process
Digital marketplaces have a 50% or more abandon rate, indicating major gaps in converting leads into revenue
Many CSPs struggle to transition from "circuit slingers" to solution sellers, hindering revenue growth
Money is left on the table during renewals, as teams lack time for upsell opportunities
Omdia's analysis uncovered a vicious circle within telco B2B operations: CSP revenue mix dictates resource allocation, often reinforcing investment bias rather than addressing the root issues:
Incumbents focus more on contract management and renewals, often neglecting pre-sales and sales investments.
Challengers prioritize new business acquisition but risk neglecting retention strategies.
Mergers lead to reactive efforts to retain clients, distracting from proactive growth initiatives.
These inefficiencies, coupled with disconnected systems and teams, hinder service providers from fully capturing the lucrative B2B revenue opportunity. Candid views on the B2B customer lifecycle were gathered from 224 CSP executives across North America, Latin America, APAC, and EMEA, examining the B2B customer lifecycle.
Positively for service providers, these challenges are fixable, and the survey found that more than half (53%) of operators are planning to invest in customer engagement to address their B2B commerce challenges, with 43% planning B2B-related investments in tools, systems, and platforms.
Amdocs B2B Portfolio digitalizes and automates service providers' lead-to-care processes and end-to-end customer lifecycle management for businesses of any size. To learn more and download the full Omdia report, click here.
"While service providers are acutely aware of the challenges they face in managing B2B customers, the magnitude of the money they are leaving on the table has been underestimated," said Gil Rosen, Chief Marketing Officer at Amdocs. "The B2B market presents huge opportunities for growth, particularly beyond pure-play connectivity, but to capitalize on this and better serve business customers at scale, service providers need to take a smarter approach to digitalization and increase their adoption of advanced automation and AI-driven capabilities, seamlessly integrated across systems to streamline operations, reduce inefficiencies and empower enterprise sales to focus on sales and growth as opposed to managing complex and lengthy backend logistics."
"Telco B2B is entering an exciting growth phase but service providers are struggling to keep up," said Camille Mendler, Chief Analyst at Omdia. "Billions of winnable revenue are already slipping through the cracks due to fragmented systems, disconnected teams, and outdated processes. Unless service providers address these issues now their big bets on AI, network APIs, 5G slicing and other new services are in jeopardy."
Amdocs will be showcasing its B2B Portfolio at Mobile World Congress Barcelona, March 3-6.
Supporting Resources
Keep up with Amdocs news by visiting the company's website
Learn more about the Amdocs B2B portfolio
About Amdocs
Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers' innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and enterprise customers. Our employees around the globe are here to accelerate service providers' migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $5.00 billion in fiscal 2024. For more information, visit www.amdocs.com
Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macro-economic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, as well as the current inflationary environment, and the effects of these conditions on the company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the company's customers, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the company's offerings and operations and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2024 filed on December 17, 2024 and our Form 6-K furnished for the first quarter of fiscal 2025 on February 18, 2025.
Media Contacts
Mario Hajiloizi
Amdocs Public Relations
E-mail: [email protected]
Katie Owen
Babel PR for Amdocs
Tel: +44 (0) 7490 131475
Email: [email protected] / [email protected]
SOURCE: Amdocs Management Limited
View the original press release on ACCESS Newswire
S.F.Warren--AMWN