Rising telco-GSI partnerships: powering the next wave of enterprise transformation 

Telcos are experiencing sustained margin pressures as connectivity-led business models become increasingly commoditized. With enterprises demanding networks that are intelligent, programmable, and seamlessly integrated with modern cloud and Artificial Intelligence (AI) ecosystems, telcos must evolve from network operators into digital service orchestrators capable of delivering agility, automation, and differentiated enterprise value. 

For GSIs, delivering end-to-end enterprise transformation requires deeper integration with complex, capital-intensive network environments. Modernizing network cores, edges, and Operational Support Systems (OSS) / Business Support Systems (BSS) stacks demands infrastructure control and regulatory expertise that GSIs lack. Consequently, they are partnering with telcos in joint transformation programs to bridge capability and delivery gaps. 

This convergence brings together complementary strengths. Telcos contribute network depth, infrastructure ownership, and enterprise reach, while GSIs bring transformation scale, cloud and AI expertise, along with deep cross-industry experience. Together, they are creating new sources of revenue through industry platforms, data-driven monetization models, and AI-led services that extend well beyond connectivity. 

As this collaboration deepens, telcos and GSIs are shifting from transactional relationships to co-innovative partnerships focused on building intelligent, monetizable connectivity ecosystems. This evolution is best understood through the 3M (Modernization, Monetization, and Mobilization) framework, which outlines how telcos and GSIs are jointly laying the foundation for the next phase of intelligent enterprise growth.  

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Modernization: re-architecting the core for agility, automation, and intelligence 

Modernization forms the foundation of telco-GSI collaboration. It signifies a shift from isolated IT upgrades to enterprise-wide operating model reinvention focused on agility, automation, and AI readiness.  

GSIs are enabling telcos to transition from legacy architectures to cloud-native, modular, and data-driven systems that improve operational efficiency and scalability. The modernization agenda now spans OSS and BSS transformation, network automation, and AI infrastructure enablement to support large enterprise-scale AI deployments and digital service innovation. 

To scale modernization effectively, new partnership constructs are emerging. Telcos are creating digital carve-outs that allow GSIs to manage delivery and scale execution while retaining strategic control. Others are co-developing joint modernization frameworks that combine automation, cloud orchestration, and AI tooling into repeatable solution blueprints. 

Examples include: 

• HCLTech and Verizon co-developing AI-enabled, cloud-native network operations as part of their global managed network modernization partnership 

• TCS and Vodafone modernizing BSS into Application Programming Interface (API)-based, AI-enabled digital platforms to enhance agility and interoperability 

Thus, modernization is no longer a technology upgrade; it is the strategic foundation that will define how telcos and GSIs operate, deliver, and innovate in the AI era.  

Monetization: converting infrastructure and data into growth platforms 

With modernization establishing the foundation, telco-GSI partnerships are now increasingly focusing on monetization by transforming networks, data, and compute assets into scalable revenue platforms. The focus is shifting from operational efficiency to ecosystem-driven growth and value creation across industries. 

Telcos are beginning to commercialize programmable network capabilities, while GSIs offer platform engineering and digital transformation expertise to scale these opportunities. Three constructs define this phase: 

• API-driven monetization, in which telcos expose network functions such as slicing, quality of service, and location intelligence through open APIs that GSIs integrate into enterprise workflows 

• Platform-led industry solutions, which combine 5G, edge computing, and AI to deliver outcome-based, industry-specific platforms 

• AI and Graphics Processing Unit (GPU) infrastructure monetization, in which telcos offer compute capacity as AI-as-a-Service or GPU-as-a-Service to meet enterprise demands for intelligent workloads 

Examples include: 

• Telefónica advancing network API commercialization through Open Gateway collaborations with partners such as AWS and Google  

• Tech Mahindra and Aduna co-creating a unified network-API platform that enables telcos to monetize identity, security, and location services 

Monetization now serves as the bridge between operational efficiency and strategic growth, enabling telcos and GSIs to co-create digital platforms and unlock new, sustainable revenue streams.  

Mobilization: institutionalizing co-creation and scaling innovation 

Mobilization defines how telco-GSI partnerships translate strategy into sustained execution. It focuses on embedding collaboration through shared delivery, governance, and innovation models that institutionalize co-creation. 

Telcos increasingly rely on GSIs for execution scale, while GSIs leverage telco assets and enterprise reach to accelerate innovation and commercialization. Mature partnerships are operationalizing collaboration through: 

• Joint innovation hubs that incubate, test, and scale industry-specific use cases 

• Co-owned IP pipelines that generate reusable and monetizable digital assets 

• Cross-partner talent ecosystems that integrate network, cloud, and AI expertise to drive agile execution and delivery 

Examples include: 

• NTT, VMware, and Intel co-developing an Edge-as-a-Service model, combining managed edge and private 5G, to scale enterprise innovation 

• Vodafone and Accenture co-commercializing shared service operations, supported by AWS and Accenture to build cloud and Machine Learning (ML) engineering capabilities for 5G and AI innovation 

Mobilization maturity is becoming a key differentiator. Partnerships that embed co-innovation, agile governance, and shared accountability are positioned to achieve faster innovation, greater scalability, and sustained market differentiation.  

Evolution toward federated ecosystems 

Telco-GSI alliances are evolving into federated ecosystems that bring together telcos, GSIs, hyperscalers, independent software vendors, and enterprises. These multi-stakeholder ecosystems integrate connectivity, cloud, and AI to deliver end-to-end digital solutions that address complex enterprise transformation needs. 

The collaboration model is shifting from bilateral partnerships to ecosystem orchestration, governing shared IP, ensuring interoperability across technologies, and commercializing joint solutions at scale. Examples such as Vodafone’s collaboration with AWS and Tech Mahindra’s edge ecosystem demonstrate this evolution toward integrated value creation across diverse participants. 

Future success will depend on how effectively partners orchestrate these ecosystems by aligning incentives, standardizing architectures, and establishing IP governing models that balance innovation with sustainable value realization. 

Implications for GSIs and telcos 

While telcos and GSIs are converging to shape the intelligent connectivity fabric, their transformation paths remain distinct. The implications below outline the differentiated roles each must play to accelerate convergence: 

Implications for GSIs: 

• Evolve from transformation enablers to value architects, co-own business outcomes by building monetizable digital and AI platforms with telecom providers 

• Industrialize co-innovation and develop modular Intellectual Property (IP) and repeatable blueprints that telecom providers and enterprises can deploy at scale  

• Integrate AI assurance and governance, embedding transparency, compliance, and optimization into network-embedded platforms  

Implications for telcos: 

• Institutionalize co-creation as a core discipline, embedding shared governance, IP management, and joint Go To Market (GTM) models into business operations 

• Productize network and edge capabilities, co-developing industry-specific platforms with GSIs to capture new value beyond connectivity 

• Build trusted data ecosystems, leveraging API-based, privacy-compliant architectures to enable data exchange and new monetization models 

Telco and GSI partnerships are emerging as strategic growth engines that will redefine how enterprises connect, compute, and innovate. As the boundaries between network, cloud, and intelligence continue to converge, success will belong to those that modernize with purpose, monetize with innovation, and mobilize with speed to shape the future of intelligent enterprise growth.  

If you found this blog interesting, check out our report, IT Services for Telecom State of the Market 2025​ – Everest Group Research Portal.  

To learn more or discuss these topics in greater detail, contact Asritha Gantla ([email protected]), Mohit Singhal ([email protected]), Nithya S ([email protected]), or Titus M ([email protected])