Source page: McKinsey & Company
Commentary
Staying connected
Technology | Telecommunications
April 8, 2024 – If they want to strengthen their B2B revenues, telcos may want to focus more on connectivity compared with services that connectivity enables, such as the Internet of Things, IT services, and cloud-based solutions. According to a recent McKinsey Global Technology and Telecommunications B2B Pulse Survey, senior partner Martin Wrulich and coauthors find that many enterprises intend to shift their business—particularly for core connectivity offerings—from telcos to other vendors, such as channel partners and tech manufacturers. Operators that zero in on connectivity may be able to minimize churn and turn a potential weakness into a strength. Click through the interactive to see more.
Interactive
To read the article, see “Seizing the core connectivity opportunity in B2B telecom,” March 4, 2024.
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Visual form
Two-panel vendor-share bar chart for enterprise telecom and tech sourcing.
Layout / body structure
The chart is organized as two comparable panels: one for enterprises’ current primary vendor and one for the vendor they expect to use in the next 12 months. Each panel breaks nine product and service offerings into the same five vendor groups so the reader can compare how the mix shifts.
What is being compared
It compares enterprise sourcing preferences across telecom providers, system integrators, cloud providers, channel partners and specialists, and tech manufacturers. The comparison is made across connectivity and adjacent services such as IoT, IT services, and cloud-based solutions.
Measurement system
The measure is percentage share of surveyed enterprises selecting each vendor type as the primary vendor for a given product or service. The data come from the McKinsey Global Technology and Telecommunications B2B Pulse Survey for 2022 to 2023.
Visible structure inside the graphic
Rows represent product and service offerings, and each row is split into colored vendor-type segments. The first panel shows telecom providers as the most represented vendor group across the offerings, while the second panel shows the expected shift toward channel partners, specialists, and tech manufacturers.
Main takeaway from the visual
The chart shows that telecom providers face a clear switching risk in B2B accounts. Enterprises still rely on them heavily today, but the expected 12-month view points to more business moving toward other vendor types unless operators defend the core connectivity relationship.
Key standout values or extremes
The largest highlighted movement is an expected 11-percentage-point loss of share for telecom providers. Channel partners and specialists gain 4 percentage points, and tech manufacturers also gain 4 percentage points.
Controls / sequence, when applicable
The reader moves between the current-state panel and the expected-12-month panel to compare how primary-vendor preferences change.
Companion media, when applicable
There is no separate companion audio or video; the chart is the full visual on this page.