 "OPEX Worries Drive Telcos To Vendors For Managed Services")
The need among both fixed and mobile network operators to lower operating expenses is creating a huge opportunity for technology vendors to build new revenue streams through managed services outsourcing, according to the latest report from Light Reading Insider, a paid research service of TechWeb’s Light Reading.
Telecom Managed Services: The Rise of the Hollow Operator delivers an in-depth analysis of the current state of the telecom managed services sector. It maps the functions that network operators are turning over to third parties and analyses the very broad range of companies offering telecom managed services to fixed and mobile network operators, looking at how their portfolios differ.
“The multiple pressures placed on fixed and mobile operators in hyper competitive, slowing markets are requiring operators to find fresh ways to cut business costs,” says Simon Sherrington, research analyst with Light Reading Insider and author of the report. “Telecom managed services, only a few years ago considered risky to apply to anything except back-office IT systems, have now permeated all operator types, all regions of the world, and practically all network functions.”
The trend will give rise to the ‘hollow operator’ – service providers that own all or most of their infrastructure but that cede operation of that infrastructure to one or more third parties, Sherrington says. “Hollow operators will seek out third-party partnerships to offload more and more operational functions, with an eye toward cutting OPEX costs and freeing up internal resources for more intense business development activities.”
Key findings of ‘Telecom Managed Services: The Rise of the Hollow Operator’ include the following:
- The use of managed services has become a mainstream strategy for telecom network operators
- Technology vendors are reporting strong revenue growth for telecom managed services, now a robust part of the telecom industry
- The demand for new revenue means operators must find cost-effective, rapid ways of bringing new, innovative, differentiating services to market
- Early contracts are coming up for renewal, and vendors may get swapped out if they are not able to deliver continued value growth
- Operators that do not have a managed services strategy must re-evaluate their position to avoid being left behind by their rivals