The telecom industry is undergoing massive changes due to the hyperconnected nature of the modern world, the rise of 5G and 6G, and the proliferation of wireless networks. These tech trends have completely transformed talent needs for telcos. McKinsey estimates that 33.3% of telcos are looking to hire new tech talent between 2021 and 2031, higher than the industry average of 30.2%.

In other words, telecom companies are now firmly positioned as technology and digital-first companies in their own right, with talent needs similar to any successful Silicon Valley startup. Rather than technicians and customer service reps, the focus shifts to site reliability engineers (SREs), sysadmins, and DevOps professionals.

Seven notable trends have contributed to this shift, and these are the areas where telecom industry leaders must pay attention as they gear up for talent management in 2024.

1. The Rise of 5G Networks

   5G networks have been available nationwide in the US since 2021. It will become even more widely available in the next few years, reaching less mature economies and more remote parts of the world. Indeed, the industry is preparing to launch by the end of this decade. However, 5G tech trends usher in skill requirements of their own, which telcos today may not readily possess.

   For example, 5G is the first telecom network to support slicing, an offering in high demand among business customers. Network slicing allows a single network to be divided into discrete tunnels, each configured to cater to a different use case and/or user segment. 5G networks also use more advanced architectures and can increase the demand for the Internet of Things (IoT) and smart cities, which gain from the low latency functionalities of 5G.

   Telcos need to hire tech-savvy professionals who are abreast of the unique features of 5G, the use cases where it’s applicable, and emerging business requirements around low latency and high-speed network connections.

2. Artificial intelligence (AI) and machine learning (ML)

   AI/ML is another prominent tech trend reshaping talent across industries, including telecom. Since the 2022 launch of ChatGPT, artificial intelligence tools have become more accessible to users than ever before, and they present a massive opportunity for the telecom sector.

   This is because telcos already collect large amounts of data in the form of mobile phone usage, network data, billing information, server logs, and more. AI can help mobilize and monetize this data by using it to uncover hidden insights. For example, AI can enable predictive maintenance of telecom equipment, while generative AI can transform customer support. Meanwhile, telcos must also support network infrastructure to power AI processing.

   As a result, the industry needs professionals with a deep understanding of artificial intelligence, including knowledge of how to leverage it and support its development through faster interfaces and intelligent network-enabled data processing.

3. Cloud Computing Proliferation

   The rise of cloud computing has entirely transformed how networks operate. It has enabled cloud-based network architectures like software-defined networking (SDN) and virtual network functions (VNF). These allow Telcos and network users greater flexibility and scalability, which is why global giants like Vodafone upgrade their networks with SDN.

   However, this tech trend also comes with unique skill requirements, including SDN/NFV-specific certifications, the knowledge of how to use software technologies for network management, and cloud-based quality of service (QoS) implications.

4. Cybersecurity Enhancements

   Despite its fast digitization, just 1% of telecom companies have encrypted more than 90% of their sensitive data. At the same time, new tech trends are causing fresh cybersecurity threats – 81% of telcos are also concerned about threats associated with 5G. The existing talent landscape is challenging to meet these emerging security needs.

   Infosys found that 74% of telcos struggle to embed security in their enterprise IT architecture. This talent gap must be addressed at every level, from frontline employee training to service reps who can educate employees. They also need new personnel to manage security tools like cloud access security brokers (CISBs) and encryption keys.

5. Internet of Things (IoT) Connectivity

   IoT adoption will steadily increase as 5G and low latency networks become more widespread. Smartwatches, home appliances, and intelligent office security solutions have exploded in the last few years. More and more cities are incorporating IoT systems like smart routing for emergency responders to machine-to-machine (M2M) communication of natural disasters. 

   Telcos will need talent adept in programming languages like Lua, Parasail, and Rust to fulfill these needs. They’ll also have to be updated on networking protocols like Zigbee, LoRaWAN, and NB-IoT, not to mention knowledge of unstructured data processing systems.

6. Edge Computing

   Edge computing is closely related to IoT as it refers to data processing closer to the data origin instead of transporting it back to the cloud. Telcos like AT&T now offer end-to-end and multi-access edge (MEC) solutions that combine LTE and 5G for connected environments in retail, stadiums, healthcare, and manufacturing sites.

   While most telecom companies have the infrastructure and systems to power edge solutions, they also need personnel familiar with edge device management, edge app configurations, edge networking protocols (some of which overlap with IoT), and wireless networking skills. In the future, virtualization will also become common at the edge, which means Telcos need to hire professionals with knowledge of containers and microservices.

7. Blockchain Technology

   Blockchain technology is a distributed ledger system that enables immutable, decentralized, transparent, and secure data storage. For telcos, given that they generate, ingest, and consume large amounts of data, blockchain offers a highly efficient solution for data storage. It can power smart contracts to automate telecom transactions and customer-facing processes like billing and identity management. 

   However, blockchain skills still need to be improved, owing to the niche and slightly non-transferable nature of these skills and a steep learning curve. To address this tech trend, telcos need to act fast and hire engineers with mastery of blockchain programming languages (e.g., Solidity), experience working in decentralized systems, and expertise in smart contracts.

Talent Management Strategies for Telecom Leaders

Regarding talent management in the face of these emerging tech trends, telcos have three strategic options – nurture, acquire, or outsource. The first strategy is more sustainable and ensures that telecom companies have a ready talent pool to dip into, thanks to upskilling and reskilling. But it’s also an expensive proposition and requires a cultural pivot to encourage existing employees to embrace these demanding digital skills.

The following strategy – acquire – is the most attractive since telcos obtain ready-to-deploy talent from the labor market, ensuring minimal ramp-up time to total productivity. There are very few training and transition costs, but the success of this approach depends hugely on HR teams, the broader talent acquisition ecosystem, and the hiring processes in place.

Outsourcing refers to using third-party talent, primarily managed service providers (MSPs), specializing in one or more tech trends. This offers the advantage of assured, SLA-driven results but has the highest cost component and may only be sustainable, resulting in vendor lock-in.

Telecom companies are poised at an inflection point in 2024, especially with exploding FinTech growth and AI boom, which rely on seamless and robust networks. Addressing these seven tech trends and their associated talent management implications is essential for telcos to stay on the winning side.