Two-thirds of Irish businesses are switching telcos

16 Nov 2009

Some 35pc of Irish businesses are switching telecoms suppliers and this is having a strong impact on cost savings, 3 Ireland said today.

3 says a switching culture has developed amongst the Irish business community during the economic slump and that this has had a real impact with significant savings reducing individual company cost bases.

Survey particulars

The 3 business survey was carried out last month by talking to more than 200 small and medium-sized businesses across Ireland. The findings detailed how in the past year, almost two-thirds (64pc) of Irish businesses have switched their phone, internet or electricity supplier, with 62pc of those that switched achieving savings of more than 10pc.

The results provide an insight into the behaviour of Irish business managers and illustrate the continued pressure which Irish businesses are under to achieve further cost savings.

Whilst increasing sales remains the main challenge for 52pc of businesses surveyed, 35pc of those feel that achieving further cost reductions would be the No 1 challenge in 2010, whilst 17pc of respondents also felt it would be difficult to maintain current employment levels over the next three to six months.

Effect of recession

These results reflect the impact of the recession on businesses as they are forced to examine every aspect of their costs to find potential savings.

It also reflects the growth of the switching culture in Ireland amongst both businesses and consumers, as both groups are no longer prepared to sit out existing contracts and are prepared to move to another provider to achieve savings. 

The telecommunications market has been a primary driver of the switching culture with some of the biggest savings available.

Nearly three-quarters of businesses (73pc) indicated saving more than 10pc as a result of switching, whilst 87pc of Irish businesses detailed they would consider changing their mobile-phone supplier if offered definite savings. 

Nearly half of those surveyed had been with the same mobile provider for more than five years.

Telecommunications advances matter

The research also showed that more than four-fifths (86pc) of Irish businesses surveyed feel that advances in telecommunications technology were either important or very important for their business, with more than half (53pc) planning to invest in enhanced telecommunication services in 2010, such as mobile broadband, video conferencing, enhanced roaming options and social-networking tools.

“We have seen time and time again that many businesses across Ireland are unhappy with the traditional competitor offering and have asked 3 to deliver real value in terms of actual bottom-line savings as well as personalised customer care,” said Elaine Carey, 3’s sales and marketing manager.

“As the research shows, now more than ever customers want value for money and a reliable service which we are able to offer,” said Carey.

By John Kennedy

Photo: Some Irish businesses are switching telecoms suppliers and this is having an impact on cost savings, a survey by 3 suggests.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years