Telecom equipment vendors worldwide are now managing 45% of the world’s subscriber base, up from 33% just 6 months ago, according to Infonetics Research, a leading market research firm. Infonetics via its latest Service Provider Outsourcing to Vendors report, which tracks the revenue vendors derive from the services they provide to communication service providers (CSP)s, also forecasted that the telecom sector operations outsourcing will grow at a 8% compound annual growth rate (CAGR) from 2012 to 2017 and the total outsourcing value to reach USD79 billion by 2017. The major oursourcing deals by Indian operators such Bharti, Idea, Aircel, Hutchison (Vodafone) Essar, and Reliance Infocommas rank Asia second after EMEA, while Chinese players have limited their outsourcing activities. The telecom carrier outsourcing includes managed services activities for both the fixed network and mobile network operators. The major deals deals that have taken place this year include Reliance Communications’ 8-year, $2 billion managed services contract with Alcatel-Lucent and Ericsson, Tele2 Netherlands’ agreement with NSN to build an LTE network, du’s 5-year managed services deal with Huawei, and T-Mobile Poland’s 3-year contract with NSN for billing system development and maintenance.
“Though we looked for service providers across the board to continue outsourcing at an unabated pace, global telecom outsourcing revenue in the first half of 2013 is basically flat from the same time last year, a result of a combination of factors including forex for Ericsson, year-over-year revenue declines at IBM and HP, NSN for various reasons, and growth at Alcatel-Lucent and Huawei,” reports Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.Continues Téral: “Still, we’re remaining bullish on the carrier outsourcing market, anticipating an increase in mobile network outsourcing deals that will drive revenue to $79 billion by 2017 as mobile operators try to keep opex under control.” Source - Infonetics (Nov 4, 2013)
