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More Telcos Turn to Vendors for Managed Services

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August 21, 2009

More Telcos Turn to Vendors for Managed Services

By Anuradha Shukla, TMCnet Contributor

A recently released report indicates an increase in the need among both fixed and mobile network operators to lower operating expenses in a bid to build new revenue streams through managed services outsourcing.
Simon Sherrington, research analyst for the latest report says operators are driven to find fresh ways to cut business costs especially in what he refers to as the “hyper competitive, slowing markets.”
Only a few years ago, operators thought it was risky to use telecom managed services for anything except back-office IT systems. However, the trend has changed now and these services are being used by all operator types, in all regions of the world, and practically all network functions.

Sherrington emphasized that this trend will give rise to service providers that own all or most of their infrastructure but transfer operation of that infrastructure to one or more third parties.
Other key findings of the report show that the use of managed services has become a mainstream strategy for telecom network operators and those not having a managed services strategy must reevaluate their position to avoid being left behind by their competitors.

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Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha’s article, please visit her columnist page.

Edited by Stefania Viscusi

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