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With
increased competition and lower-margin products cutting into their
profitability, wireline and wireless carriers will be spending nearly $1.4
trillion over the next five years on outsourced services in order to reduce
costs, says a new market research report from Insight Research Corp. By the
close of 2007 alone, wireline and wireless carriers will be spending more than
$198 billion on outsourced services worldwide.
According to
Insight’s newly-released market analysis report, “Service Bureaus,
Outsourcing and Telecommunications Networks 2007-2012,” until now, carriers
have considered outsourcing to be little more than a tactical form of reducing
the cost of acquiring ancillary services, but the lower margins associated with
voice over IP are forcing carriers to focus less on achieving incremental cost
improvements and instead use outsourcing as part of a transformational
strategy.
“Before the
advent of VoIP, outsourcing was used by carriers to gain incremental cost
improvements in the 10- to 20-percent range,” says Robert Rosenberg, President
of Insight. “However, the lower margins associated with IP communications as
well as increasing competition are forcing carriers to rethink their entire
strategy. Carriers are unbundling their value-chain and using outsourcing as a
transformational strategy to achieve cost savings between 30 and 60 percent,”
Rosenberg concluded.
The study,
which evaluates outsourcing expenditures for wireline and wireless carriers for
eight geographic regions, suggests the most frequently outsourced functions are
billing, training, directory services, operator services, network management,
customer care, SS#7 interconnection, and OSS interconnection.
A free report
excerpt, table of contents, and ordering information are available online at
http://www.insight-corp.com/reports/servbur06.asp. This 176-page report is
available immediately for $3,995 (hard copy). Adobe Acrobat (PDF) report
licenses are also available. Visit the Insight web page or call 973-541-9600
for details.
For more information please
contact:
Ms. PJ Conger, Marketing Director
973-541-9600
pj@insight-corp.com |
|
Service Bureaus,
Outsourcing and Telecommunications Networks 2007-2012 |
Telecom
Market
Research,
