What's Happening?
The telecom industry is increasingly focusing on tail spend, which accounts for a significant portion of procurement budgets but has traditionally been overlooked. By leveraging Artificial Intelligence (AI) and Human Intelligence (HI), telecom operators
are transforming tail spend into a strategic asset. This shift is driven by the need for agility and compliance in a rapidly changing market. Tail spend, which represents 20% of procurement budgets but 80% of transactions, is being re-evaluated to drive digital transformation and improve efficiency.
Why It's Important?
The strategic management of tail spend can lead to significant cost savings and operational efficiencies for telecom companies. By integrating AI with human expertise, telecom operators can better manage procurement processes, ensuring compliance and uncovering hidden value in small transactions. This approach not only enhances financial performance but also supports innovation by enabling access to niche suppliers. As the telecom industry faces increasing regulatory and competitive pressures, optimizing tail spend could provide a competitive edge and support sustainable growth.
