Detecon Study on Strategic Sourcing in the Telecommunications Industry

Telecommunications Companies Underrate the Strategic Role of Procurement

BONN and ESCHBORN, Germany, April 28, 2011 - The procurement departments at many telco operators lack the necessary
structures for them to play a major role in achieving company goals. This is
the result of a recent study prepared by the ICT management consultancy
Detecon International. While it finds that most companies have a
comprehensive procurement strategy, 75% of them do not pursue the strategy in
all parts of the corporate group and subsidiaries.

The study, entitled "Strategic Sourcing in the Telecommunications
Industry", has prepared a number of recommendations for action for top
managers in purchasing. The conclusions are based on a survey of 48
specialists from the procurement departments of telco operators active on an
international scale. The evaluation reveals that while telco operators see
the necessity and potential of optimized and global purchasing processes in
terms of cost reductions, encouragement of innovations, and risk management,
they have not yet succeeded in implementing them permanently.

"This delay is more than just disadvantageous; it can lead to the
development of very real business threats," warns Michael Hanke, Managing
Partner at Detecon International and initiator of the study. "Purchasers
should not stop with simple cost reductions; they should work together with
suppliers to develop innovative products and services while at the same time
building a stable early warning system for supply risks of all kinds.
Ideally, the chief procurement officer will also act as an advisor for
corporate strategy."

The study "Strategic Sourcing in the Telecommunications Industry" is
available for downloading at www.detecon.com/strategic_sourcing

For additional information, go to:

www.detecon.com

info@detecon.com

    Press contact

    Detecon International GmbH
    Gerhard Auer
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    D-53227 Bonn
    Phone: +49-228-700-1013
    Fax: +49-228-700-1017
    E-Mail: gerhard.auer@detecon.com
    www.detecon.com

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