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Managed Services for Telcos: Progress & Pain Points
Providers use the terms outsourcing, managed services and out-tasking in various ways and there is some blurring of the definitions. For instance, the term "managed services" may be preferred simply because of the apparent negative association of "outsourcing" with transfer of jobs from one country to another ("offshoring").

In some markets, the outsourcing juggernaut is not rumbling on as many thought it would: In the U.S., there have been few deals following the ground-breaking 2009 network outsourcing arrangement between Sprint Nextel and Ericsson. And in India, the home of the mega-outsourcing contract, there are some concerns over the future of some wireless operators for regulatory reasons, which has caused some uncertainty around the position of the outsourcing providers that have very large multi-year contracts with them.

Nonetheless, outsourcing and managed service provision remains extremely important: the fundamental drivers remain in place, and the market is maturing and evolving to take into account operators' new priorities. Services provided by the large network equipment vendors and IT solution providers are becoming industrialized for maximum efficiency. They are also developing in new areas, which we predicted back in 2009 particularly in the focus on devices, application management and the customer experience.

Commercial imperatives mean that the use of network outsourcing is continuing. Managed services deals to transform networks and OSS under the intense pressures faced by CSPs are continuing to grow; those operators that have gone down this route will stick with it, and they will be joined by others across the world. The very biggest operators will resist for longest, but they will eventually join the managed services market.

The role for IT consultancies and business process outsourcers will increasingly be focused on the delivery of managed service solutions built around solving discrete problems faced by operators: They will compete for siloed outsourcing contracts rather than giant "horizontal" deals. CEM, managed enterprise mobility and cloud services will be areas where operators look for solution-based help delivered as a managed service.

Managed Services for Telcos: Progress & Pain Points examines the market for the provision of managed network, IT and service operations. It looks at the drivers of outsourcing and managed service use by operators, comparing them by region and by type of operator, and identifying how they have changed. The report also looks at how the nature of managed services engagements and the measures of success are changing in response to these changing drivers. It identifies the different types of service providers, which parts of the market they can participate in and how they differentiate themselves. Finally, it profiles the key providers whose services encompass management of multi-vendor networks, IT infrastructures and applications.
Sample research data from the report is shown in the excerpts below:
Table of Contents (hri0912_toc.pdf)
The biggest providers of outsourcing services and managed services to telcos and CSPs are network equipment providers, the big North American and European IT consultancies and solution houses and the specialist (often Indian-headquartered) outsourcing specialists. There is some blurring of the lines particularly between the last two categories. (Network equipment providers tend not to compete against IT consultancies for "pure IT" outsourcing, but do compete for strategic IT consultancy projects.) The following excerpt indicates the areas of outsourcing where the largest types of company play most strongly.
[click on the image above for the full excerpt]
Companies profiled in this report include: Accenture plc (NYSE: ACN); Alcatel-Lucent (NYSE: ALU); Amdocs Ltd. (NYSE: DOX); Capgemini S.A. (Paris: CAP); Ericsson AB (Nasdaq: ERIC); Hewlett-Packard Co. (NYSE: HPQ); Huawei Technologies Co. Ltd.; IBM Corp. (NYSE: IBM); Infosys Ltd. (Nasdaq: INFY); NetCracker Technology, a subsidiary of NEC Corp. (TYO: 6701; OSE: 6701; NSE: 6701); Nokia Siemens Networks, a joint venture of Nokia Corp. (NYSE: NOK) and Siemens AG (NYSE: SI; Frankfurt: SIE); Tata Consultancy Services Ltd. (BSE: 532540; NSE: TCS); Tech Mahindra Ltd. (BSE: 532755; NSE: TECHM); Wipro Ltd. (NYSE: WIT; BSE: 507685; NSE: WIPRO); and ZTE Corp. (SZSE: 000063; SEHK: 0763).
Total pages: 30
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