Unlocking procurement’s strategic value in TMT
Survey insights and actionable guidance for CPOs
Procurement in the technology, media and telecommunications (TMT) sector is evolving from a cost-focused function into a strategic driver of growth, resilience and enterprise value. Deloitte’s 2025 Global Chief Procurement Officer (CPO) Survey shows that telecom procurement leaders are outperforming many peers in procurement cost management while building capabilities to support innovation, risk management and business transformation. The data points to three defining themes: strong operational performance, digital procurement transformation and generative artificial intelligence (GenAI) as differentiators and talent as the critical enabler of future success. This perspective can help TMT leaders empower their strategies with actionable insights.
- Telecom procurement is performing strongly, but 74% of teams still spend less than 30% of their time on strategic work—even though 88% meet cost savings targets and 83% have at least half of spend under formal management.*
- Digital procurement transformation is becoming a real differentiator, with more than 17% of TMT CPOs piloting GenAI, 26% reporting two to three times the return on investment (ROI) and more than 60% investing in analytics.*
- Talent is the multiplier for business impact, as 98% of TMT CPOs say contract and relationship management adds significant value and 76% plan to spend more time on strategic work.*
Three trends driving the digital procurement transformation
Here are three key trends that can help
TMT CPOs expand procurement’s role in shaping business outcomes:
1. Strong performance, but limited strategic capacity
TMT procurement teams are delivering strong results. Among surveyed organizations, 88% met cost savings targets, above the 86% cross-industry average, and 83% have at least half of spend under formal management, slightly ahead of the 81% overall average.* In addition, 81% of TMT procurement teams report through Finance, versus 49% across industries,* giving them closer alignment to enterprise priorities such as budgeting, investment decisions and risk management. This strong performance in procurement cost management creates a solid foundation for broader procurement transformation.
But execution strength has not yet translated into enough strategic capacity. Seventy-four percent of TMT teams spend less than 30% of their time on strategic activities, while 95% of TMT CPOs want to spend more than 40% of their time on higher-value work.* The implication is straightforward: Leading organizations will need to automate routine work and redesign operating models, so procurement can play a bigger role in innovation and growth.
2. Digital transformation and GenAI are becoming differentiators
TMT procurement is moving faster than many sectors in digital adoption. More than 17% of TMT CPOs are piloting GenAI use cases, nearly twice the rate of other industries, and 54% say GenAI adoption is essential to remain competitive, compared with 48% elsewhere.* These tools are being used to improve procurement workflow automation, risk sensing, supplier selection and sourcing insights.
The investment case is strengthening: 26% of TMT CPOs report two to three times the ROI on GenAI investments, and 40% expect even greater value from future technology initiatives. At the same time, more than 60% are investing in data analytics, especially to identify savings in areas such as software licensing.* Digital procurement transformation is not just about efficiency; it is helping procurement fund innovation while sustaining cost discipline.
3. Talent is the transformation multiplier
Talent remains the biggest constraint—and opportunity. TMT CPOs are prioritizing digital skills such as GenAI literacy, advanced analytics and agile ways of working, while also investing in core advisory capabilities like influencing, change management and category expertise. Ninety-eight percent say contract and relationship management adds significant value, and 76% plan to allocate more time to strategic work.* These capabilities will be critical as organizations advance a more strategic telecom procurement strategy.
Final summary
In conclusion, leading organizations are responding with hybrid talent models, targeted upskilling and stronger cross-functional collaboration. The message from the survey is clear: Digital procurement transformation will be defined not just by technology, but by the talent needed to turn technology into business value.
For additional information about 2025 Global CPO survey visit:2025 Global Chief Procurement Officer Survey | Deloitte US
