stc Kuwait: Procurement Innovation & Partnerships for Future

stc Kuwait is not only the go-to telecommunications service provider in the region, but is transforming the region by boosting connectivity. 

The company is committed to providing its customers with a unique range of products and services that cater to their digital aspirations. This includes opportunities in telecommunications, entertainment, information, digital and data transfer services. It boasts more than a decade of excellence and has become the fastest-growing and most advanced telecom operator in Kuwait, with the largest 5G network and a customer base of 2.3 million. 

We spoke to Aswani Nimmagadda, Director of Procurement for stc Kuwait, to discuss the evolving market, inflation and uncertainty, his goal of sustainable procurement, and partnerships with leading technology providers in the industry such as Tecnotree and Huawei. His journey into procurement is a testament to his diverse and extensive involvement in various roles within the telecommunications industry. With a breadth of experience that ranges from software development to risk analysis, Aswani is well equipped with the knowledge required to catalyse digital transformation in the region.

Expanding connectivity offerings in Kuwait

stc Kuwait is on a mission to redefine the telecommunications industry by focusing on four strategic pillars: delivering an end-to-end digital experience, enhancing core performance, reinventing customer experience to world-class standards and leveraging group synergies to create value and prepare for the future.

stc Kuwait's journey of progression has been marked by strategic expansions and acquisitions, transforming it from a traditional telecommunications service provider to a comprehensive powerhouse. 

Aswani explains: “When we know that it is a stagnated market we are operating in, the only way of growing is to expand our portfolio. We expanded our portfolio from a typical telecommunications service provider to an ISP and then, from an ISP, we moved into ICT.”

The company’s strategic acquisitions have played a crucial role in this transformation. “First, we acquired Quality Net, which is an ISP,” Aswani continues. “Then, a couple of years ago, we acquired e-Portal, which itself is a group with five subsidiaries under it.” 

These moves have positioned stc Kuwait at the forefront of the telecommunications sector in terms of both service diversity and financial performance.

Despite these challenges, stc Kuwait has managed to stay ahead by continuously evolving and addressing the challenges of the Kuwait market. 

By embracing innovation and expanding its service offerings, stc Kuwait is not just keeping pace with the digital age but is also leading the way in shaping the future of telecommunications in Kuwait. 

The company’s commitment to advanced technology and smart systems ensures that it meets the needs of its diverse customer base, including individuals, businesses, government entities and the local community.

Revolutionising telecommunications

stc Kuwait seeks to redefine the industry by focusing on key strategic initiatives such as advancing 5G technology, developing connected cars, implementing smart cities and exploring emerging technologies such as AI and blockchain. 

“When 5G was introduced, it became the talk of the town,” says Aswani. “Staying true to our motto of pioneering digital transformation in Kuwait, stc was the first and only network to take 5G further to Full 5G technology.  Additionally, sustainable procurement is becoming increasingly vital in today's business landscape. It's not just about securing the best price or quality anymore; it’s about making decisions that consider the environmental and social impacts of our supply chain. Ultimately, sustainable procurement is about creating long-term value, both for our company and for society as a whole.” 

One of the company’s unique selling points is its commitment to digital transformation. “stc Kuwait doesn’t just provide connectivity; we empower our customers with cutting-edge technology, tailored services and exceptional reliability. What sets us apart is our focus on anticipating future needs—whether it’s through pioneering 5G infrastructure, enabling smart city development, or offering advanced solutions. We’re not just a service provider; we’re a partner in our customers’ digital journey, consistently delivering value that goes beyond traditional telecom services.” 

Emerging technologies like AI and blockchain are also at the forefront of stc Kuwait's strategic initiatives. Although these technologies are not yet fully deployed, stc is actively conducting proof-of-concept projects to explore their potential in enhancing operational efficiencies and market competitiveness.

By embracing innovation and expanding its service offerings, stc is shaping the future of telecommunications in Kuwait. 

Navigating procurement challenges and driving business success

Aswani also highlights the effects of COVID-19 and regional geopolitical instability, which have significantly influenced operations – particularly when it comes to rising shipping costs and inflation.

“The COVID-19 pandemic and regional geopolitical instability have had profound impacts on our operations as a telecom operator,” Aswani explains. “One of the most significant challenges we've faced is the sharp rise in shipping costs and inflation. The pandemic disrupted global supply chains, leading to delays and increased expenses in sourcing essential equipment and materials. These factors put pressure on our margins and operational efficiency. In response, we’ve had to adapt by optimising our supply chain, negotiating better terms with suppliers, and leveraging local sourcing where possible. While these challenges are significant, they have also underscored the importance of agility and strategic planning in navigating uncertain times.” 

Aswani also describes the pivotal role of procurement in driving business success and value creation for stakeholders. 

He stresses that procurement is crucial for managing limited budgets and achieving business targets, emphasising its role in both cost containment and avoidance. 

This strategic approach has enabled stc to enhance its market position and support essential cost efficiency initiatives.

Aswani says: “Procurement is crucial in driving business success and value creation. It goes beyond cost management by strategically sourcing quality products and services that align with our values. Effective procurement fosters innovation, manages risks, and builds strong supplier relationships, directly impacting our bottom line and enhancing our competitive edge. Ultimately, it plays a key role in achieving our business goals and delivering value to all stakeholders.”

Additionally, Aswani highlights that – by preventing cost increases and avoiding inflation on existing contracts – stc has achieved superior positioning compared to its competitors.

“It's not just about cost savings, but we avoid the low-cost increases,” he goes on. “This is one aspect that everyone tends to probably underplay: the significance of cost avoidance. 

“So, one of the key things that we try to do is to avoid any inflation on the existing contracts. We have real use cases, when we achieved better positioning than our competitors in some contracts, which really enabled us to propel forward."

Driving transformation through collaboration

Aswani also emphasises the importance of early involvement of and collaboration with key partners who are leading innovators in the field of technology such as Apple, Google, Huawei and Tecnotree to enhance network coverage and customer experience. 

These partnerships enable stc to innovate and effectively strategise its business operations.

Tecnotree is playing a significant role in supporting digital transformation efforts, providing essential solutions for business support systems (BSS) that are crucial for customer interactions. This collaboration is pivotal for both B2B and B2C operations.

Another major partner, Huawei, is integral to network deployment and the mobile ecosystem, working closely on innovative products and technologies, including the advancement of 5G technology. This collaboration has been essential in establishing a leadership position in 5G technology.

Aswani continues: “We believe in the early involvement of suppliers; I don't like to call them suppliers because they are partners. Early collaboration allows us to tap into their expertise, align on objectives, and co-develop innovative solutions that meet our specific needs. This proactive approach has helped identify potential challenges before they arise, reduce lead times, and often result in cost savings.”

Shaping the future of connectivity

Aswani explains that focusing on achieving carbon neutrality is central to stc’s future outlook. Integrating sustainability initiatives across its partner ecosystem will involve collaboration with partners to drive collective progress towards environmental goals.

“We are seriously working on certain sustainability initiatives and we are going to make our partners part of this journey. At stc group level, we have targets on becoming carbon neutral – this can be achieved only when our partners support us.”

Aswani also emphasises the importance of leveraging advanced technologies to optimise operational efficiencies and reduce costs. 

“We want to leverage certain technologies that our partners develop, especially in the area of machine learning and artificial intelligence,” he notes. 

“We want to realise the savings or optimise the experience of delivery or costs by leveraging what our partners are doing in the space of AI and ML because these tend to give us a more optimal experience on the costs and the deliveries.”

Looking ahead, Aswani acknowledges the growing challenges in maintaining pricing and financial performance due to market pressures. He views AI and machine learning not only as tools for cost savings but also as means to gain deeper insights.

“AI can give us insights on something we’ve not been able to see, so we want to be more productive, see what's happening in the market and be more proactive and prepared to meet the challenges that are going to come,” he concludes.

By embracing sustainability and cutting-edge technologies, stc Kuwait is positioning itself as a leader in the telecommunications sector, ready to meet future challenges and drive continued success.

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