The telecom industry is rapidly evolving, fuelled by 5G expansion, cloud adoption, AI-driven automation, and IoT integration.    

IT spending in this sector is surging as companies modernize their infrastructure to enhance network efficiency, customer experience, and security. These advancements are not just shaping telecom’s future but also creating new revenue streams, operational efficiencies, and market opportunities. 

This market report on IT in Telecom curated with insights from Draup’s sales intelligence platform includes –  

• Market Size and Hiring Trends of IT in Telecom: Examining the IT spending surge in telecom and global hiring hubs in telecom IT. 
• Key IT Investment Areas in Telecom: NewGen technologies are shaping the telecom sector’s future. 
• Top IT Outsourced Workloads and Major Players: Understanding the rise of IT outsourcing and key players driving software, security, and cloud innovations. 

Market Size and Growth of IT in Telecom 

The telecom sector is experiencing a surge in IT and digital investments, with global spending projections reaching $1.595 trillion in 2024. This growth is fuelled by 5G rollouts, cloud adoption, and the increasing demand for AI-driven automation, as telecom companies look to enhance network performance and monetize digital services. 

Regional Growth Trends: Who’s Leading and Why? 

• The Americas lead as the largest telecom market, driven by high demand for data and rapid 5G expansion. Operators like Verizon invest heavily in 5G, AI-powered network optimization, and cloud transformation to meet connectivity needs.
• Asia-Pacific is the fastest-growing region, fuelled by rising smartphone adoption, digital commerce, and IT outsourcing. Countries like India, China, and South Korea are at the forefront of 5G deployments, IoT integration, and enterprise digitalization. 
• EMEA is seeing steady digital transformation, focusing on network automation, cybersecurity, and Open RAN adoption to enhance flexibility and reduce vendor dependency.

Key Opportunities for Telecom Ecosystem Players 

For telecom operators, this means increased spending on 5G networks, cloud migration, and AI-powered automation to stay competitive. For IT service providers, it presents a massive opportunity to offer cloud solutions, cybersecurity services, and AI-driven analytics to telecom clients.  

Enterprise businesses using telecom services can benefit from more reliable, faster, and intelligent networks, enabling innovations like remote work, IoT automation, and smart cities. 

Key IT Investment Areas in Telecom 

As telecom companies embrace digital transformation, they are focusing on strategic IT investments to drive innovation, enhance network performance, and meet customer expectations.  

Here are the key areas where telecom companies are channelling their resources to shape the future of the industry:  

1. Cloud and Edge Computing: The Backbone of Digital Transformation

Telecoms are shifting from legacy infrastructure to cloud-based operations for on-demand scalability and low-latency applications like cloud gaming and self-driving cars. 

Companies like O2 Telefonica and Verizon are using AWS, Google Cloud, and Azure to migrate core network functions to the cloud. 

2. AI and Automation: The Future of Network Operations

AI is transforming network management, fraud detection, and customer interactions. By 2025, AI will handle 95% of telecom customer interactions. 

Cisco, T-Mobile, and Vodafone are investing in AI-driven fraud detection, network optimization, and predictive maintenance. 

3. 5G Expansion and Network Slicing: Enabling High-Performance Applications

5G will power two-thirds of smartphone connections by 2027. Network slicing will enable customized connectivity for industries like healthcare, manufacturing, and smart cities.

4. IoT and Smart Connectivity: The Next Big Data Boom

With 25.1 billion connected devices expected by 2027, telecoms are expanding IoT-powered smart cities, industrial automation, and connected vehicles. MTN and Swisscom invest in IoT-driven infrastructure and enterprise solutions.

5. Cybersecurity: Telecom’s Biggest Challenge

Growing network complexity increases cyber threats. Telecoms are adopting AI-driven security solutions and STIR/SHAKEN protocols to combat fraud, robocalls, and identity spoofing.

Top IT Outsourced Workloads and Major Players

Telecom operators are increasingly outsourcing IT workloads to reduce costs and accelerate digital transformation indicating faster deployment and growing opportunities for IT vendors specializing in telecom software, security, and AI-driven automation.

Key Players:

• Tech Mahindra, TCS, and Infosys handle ~26% of outsourced workloads.
• Capgemini, Ericsson, and HCLTech specialize in network equipment testing and automation.

Top Outsourced Workloads:

• Application Development & Maintenance (20%) – Cloud-native telecom apps.
• Software Testing (30%) – Automated security and performance testing.
• Data Engineering (9%) – Scalable data pipelines for AI and network analytics.

 

Hiring Trends and Top Hiring Locations

With telecom IT investment rising, there’s a growing demand for skilled tech professionals.

Top job roles in demand:

• Software Engineers – Developing AI-based telecom applications.
• Network Engineers – Deploying 5G networks.
• DevOps Engineers – Automating cloud operations.

Top hiring locations:

Bengaluru, Washington D.C., San Francisco – Key hubs for telecom IT talent.

Key Takeaways and Future Outlook

• Telecom is no longer just about connectivity—it’s a data-driven, AI-powered industry with massive opportunities for businesses, IT service providers, and innovators.

• 5G, cloud, and AI are the top telecom IT investment areas, with network slicing and IoT creating new revenue streams.
• AI and automation will dominate customer service, cybersecurity, and network management by 2025.
• IT outsourcing is increasing, creating opportunities for service providers in software, cybersecurity, and cloud migration.
• Hiring in telecom IT is at an all-time high, particularly for AI, cloud, and 5G specialists.

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