The trend towards service providers outsourcing the responsibility for managing their networks is rolling along, according to a recent article, Carrier Outsourcing In Full Swing.
In addition to deals between Vodafone/Ericsson, and Orange/Nokia Siemens Networks, Alcatel-Lucent announced an outsourcing contract with BASE, a wholly-owned subsidiary of Dutch operator KPN, which entails end-to-end responsibility for all network operations and rollout for BASE's network, an item, which we covered in this blog.
But just to drive the point home, the outsourcing trend is being driven in large part by the macroeconomic environment.
As TMC's Gary Kim writes:
One of the primary reasons to use third-party services has been to improve the bottom line. Typically, outsourcers can provide a given function at lower fixed cost than a service provider can do with its own staff. The bulk of third-party services deals have involved the divestment of activities that drive up operational expenses, notably in areas of operations, administration or customer care.
The current economic climate is acting as an accelerant to the process as service providers seek to boost profit margins while lowering operational expenditures.
Of course, the benefit to telecom gear makers like Alcatel-Lucent and others is clear, as they find themselves on the receiving end of these outsourcing contracts.
