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Telecom outsourcing market to increase at a CAGR of 4%

Press Release   •   Feb 18, 2013 10:34 GMT

The telecom outsourcing market has been forecast to increase at a compound annual growth rate (CAGR) of 4% between now and 2016, to hit an industry value of approximately $76 billion by the year 2016.

A trend that began about a decade ago for telecommunications network operators has accelerated in recent years. This trend, to outsource infrastructure as well as certain operational support to third party managed communications providers, is reaching a next stage in evolution.

Telecommunication services providers have been increasingly adopting outsourcing as a way to cut costs and to remain competitive.

Fierce competition among telecom service providers around the world is driving them to increase operating expenses, and that in turn is forcing service providers to outsource more of their network tasks

The next stage in evolution is to outsource value-added services including content, commerce, and next generation communication services.

This is a key development as network operators are poised to lose revenue and margins both do to marginalisation of bearer services (voice and data both) and the need for value-added service (VAS) applications.

A combination of large deals in Africa, such as Zain/Ericsson, and a flurry of medium-sized deals involving RAN-sharing activity across Western Europe, is sustaining EMEA (Europe, Middle East, Africa) as the largest market for outsourced services.

Traditional telecom vendors Alcatel-Lucent, Ericsson, Huawei, and Nokia Siemens Networks manage about 1/3 of the world's subscriber base, up 29% in just the last 6 months.

For more information on the telecom outsourcing market, see the latest research: Telecom Outsourcing Market

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