Telecom giant TIM Brasil expands outsourcing to cut costs amid inflation
RIO DE JANEIRO, BRAZIL — TIM Brasil, one of Brazil’s leading telecom providers, is intensifying its outsourcing efforts to mitigate rising operational costs caused by inflation.
The company plans to maintain annual investments of BRL4.5 billion (US$776 million) through 2027 while focusing on digital transformation and service quality improvements.
TIM Brasil boosts outsourcing to counter inflationary pressures
With inflation projected to climb to 5.58% in 2025 from 4.83% in 2024, TIM Brasil is taking proactive measures to control costs.
CEO Alberto Griselli highlighted the importance of fiscal discipline, stating, “An inflationary scenario puts pressure on some of our cost lines.”
To address this, TIM has outsourced key operations such as team dispatch and alarm monitoring to a major international contractor.
Key partnerships drive operational efficiency and cost savings
In addition to outsourcing, TIM is leveraging partnerships for services like cable maintenance, billing, and telecommunications tower management. These collaborations aim to enhance automation and productivity while allowing TIM to focus on its core business areas.
Griselli emphasized that these initiatives are designed to balance cost reduction with service quality improvements.
Inflation challenges and prepaid segment exposure
Approximately 75% of TIM’s operational expenses are vulnerable to inflationary effects, according to a Santander report.
The prepaid segment, which accounts for 51.3% of TIM’s mobile user base, faces potential challenges as inflation impacts consumer spending on non-essential services.
However, Griselli remains optimistic, noting that telecommunications are considered essential services.
Record-breaking financial performance in 2024
Despite rising costs, TIM Brasil reported a record-breaking net profit of BRL1.05 billion (US$181 million) in Q4 2024, marking a 17.1% year-over-year increase.
Total net revenue grew by 6.6% for the year, reaching BRL25.44 billion (US$4.39 billion), while EBITDA rose by 8%, supported by strong growth in mobile services and postpaid plans (+9.4%).
Future investments focus on digital transformation and 5G expansion
Looking ahead, TIM aims to reduce its capital expenditure-to-revenue ratio while expanding its digital offerings and 5G infrastructure. The company’s strategic focus includes adopting artificial intelligence tools and enhancing customer benefits through cashback programs.
With disciplined cost management and a focus on technological advancements, TIM Brasil is well-positioned to navigate Brazil’s evolving telecom landscape while sustaining profitability and growth.
