From Telco to TechCo: Why Talent is the Key to Transformation

The telecommunications industry is in the middle of a transformation. What was once a world of wires and networks is rapidly evolving into something much more tech-driven. Telcos are reimagining themselves as TechCos—companies that no longer just provide connectivity but also innovate with cutting-edge technologies like 5G, AI, and cloud services. But as this shift takes place, there’s one key ingredient that will determine whether these companies succeed or fall behind: talent.

For years, telcos were focused on physical infrastructure, ensuring reliable networks and customer service. Today, they need a workforce that can drive digital innovation and adopt a more tech-first mindset. This means companies need to rethink their talent strategy from the ground up, attracting and retaining individuals who have the skills and agility to lead in this new era. It’s not just about hiring software engineers and data scientists, though those roles are crucial. It’s about creating a culture that fosters creativity, collaboration, and continuous learning.

One of the main challenges facing telcos as they transition into tech companies is the gap between their existing workforce and the new skill sets required. Reskilling and upskilling employees has become an urgent priority. Investing in professional development and creating pathways for career growth within the company can make a big difference in how employees adapt to changing roles and responsibilities. It’s about enabling your current teams to grow with the company as it moves into this new space.

At the same time, the competition for tech talent is fierce. Telcos aren’t just competing with other companies in their industry anymore—they’re going head-to-head with big tech companies, start-ups, and virtually every other business that relies on digital innovation. Offering competitive salaries and benefits is important, but so is providing a compelling work environment where people feel they can make an impact.

Leadership plays a critical role here. Leaders need to inspire their teams, communicate a clear vision of what the future looks like, and help employees see how their contributions will shape that future. By building a strong internal culture that embraces the shift from telco to TechCo, leaders can create a sense of purpose that draws talent in and motivates them to stay.

It’s also important for telcos to think beyond their traditional business models. Moving into areas like cloud computing, AI, and IoT requires a mindset shift across the entire organization. The companies that will thrive in this new space are those that are willing to be bold, take risks, and push their innovation boundaries.

Ultimately, talent will power the transformation from telco to TechCo. Success depends not only on having the right technology but on having the right people in place to build, manage, and evolve that technology. The telcos that invest in their talent strategy today will be the ones leading the charge in the tech space tomorrow.

For more in-depth insights, check out the full article from McKinsey on how talent can power the telco-to-TechCo transformation.

Read the McKinsey Article.