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BSNL partners with Boston Consulting Group for turnaround effort: Report

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In Short:

BSNL has hired BCG for revival plans, spending Rs 132 crore. BCG will help BSNL achieve govt-set targets, improve sales, and reduce costs. The focus will be on consumer mobility, fixed access, and enterprise business. BSNL aims for Rs 35,960 crore annual revenue by FY28. Employee union unhappy with hiring, prefers utilizing existing talent. Govt expects BSNL to turn profitable by FY27.


BSNL Collaborates with Boston Consulting Group to Drive Revival Plans

bsnl ropes in boston consulting group for

Bharat Sanchar Nigam Limited (BSNL) has partnered with Boston Consulting Group (BCG) to aid in its revival efforts. Despite multiple instances of financial injection from the government in recent years, BSNL has not shown the desired progress. BCG, a US-based firm, will receive Rs 132 crore for consultancy services over a span of 34 months. The primary focus of BCG’s engagement will be to support BSNL in achieving the targets set by the government, enhancing the current business portfolio, and reducing operational costs. Their mandate also includes ensuring that BSNL’s service delivery meets industry standards.

BCG will assist BSNL in refining its sales and marketing strategies, and will be eligible for performance incentives based on their results.

Phased Approach for Improvement

The collaboration will unfold in two phases. Phase 1 will concentrate on key areas such as consumer mobility, consumer fixed access, and enterprise business. BSNL’s service quality has been flagged as a concern, prompting targeted improvements in 11 circles during this phase.

BSNL aims to achieve an annual revenue of Rs 35,960 crore by FY28, in part through the implementation of a revamped sales and distribution policy with reduced commission and incentives payout. The execution of recommendations in the second phase will be contingent on resource availability.

Employee Union Discontent

The BSNL employee union has expressed dissatisfaction with the decision to engage an external consultancy. They advocate for leveraging internal talent and resources instead. The government anticipates BSNL’s return to profitability by FY27.


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