Sign up for FREE RESEARCH BRIEFS

       Contact
About Us Research Services News Events Analysts Login
E-mail
Password
Save my password

  Press Contact:
Stéphane Téral
Principal Analyst, Mobile Infrastructure and Carrier Economics
Infonetics Research
(408) 583-3371
stephane@infonetics.com
twitter: infonetics


Telecom carriers spent $57B on outsourced services in 2007

 

CAMPBELL, CALIFORNIA, May 1, 2008—Facing pressure to quickly innovate with new services and to cut operational expenditures (opex), service providers are increasingly outsourcing their day-to-day network operations to professional service houses, says a new report from analyst firm Infonetics Research.

Driven by traditional IT integrators and the telecom vendor integrator arms of Alcatel-Lucent, Cisco, Ericsson, HP, Huawei, IBM, Microsoft, Motorola, NEC, Nokia Siemens, Nortel, and others, the professional services shops provide everything from vendor network integration, network assessment, monitoring, and network design to the service providers who hire them.


In 2007, service providers around the world spent $57 billion on such outsourced services, according to a new report by Infonetics Research, Professional Services to Service Providers: Market Share and Forecast.


“For equipment vendors looking to increase their market share or get into the professional services market, Asia Pacific is the place to be, as carrier spending there represents about a third of the worldwide market. There is strong activity in India with multi-billion dollar outsourcing contracts, and once China's telecom restructuring is complete, we expect new deals to emerge there as well. Africa and Latin America are the next big opportunities in this market. Once the competitive landscape in Mexico and Brazil becomes more consolidated with a few large players combining to reach economies of scale, they too will look to further cut opex by outsourcing key professional services,” said Stéphane Téral, principal analyst for service provider VoIP, IMS, and mobile infrastructure at Infonetics Research.


Other highlights from the study

  • Worldwide service revenue from professional services to service providers jumped 25% from 2006 to 2007
  • In the 5 years from 2007 to 2011, worldwide revenue is expected to increase 49%
  • Worldwide carrier opex is estimated to have hit $1 trillion in 2006, with carrier spending on equipment vendor professional services accounting for just 4.5%, suggesting strong potential growth ahead
  • Tier 1 vendors (those with annual revenue larger than $7 billion), take in the lion's share of revenue from professional services to carriers, representing 83% of the market in 2007


Infonetics’ report tracks the revenue vendors derive from the services they offer to their service provider clients, and includes worldwide and regional market size, market share, and forecasts through 2011. Vendors tracked include Alcatel-Lucent, Cisco, Ericsson, HP, Huawei, IBM, Microsoft, Motorola, Nokia Siemens, Nortel, and many others.


Download report highlights from our online portal by logging in above. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.


Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in telecom and data networking. Services include market share and forecasting, end-user survey research, service provider survey research and capex analysis.

# # #

"Service providers are increasingly outsourcing their day-to-day network operations to professional service houses."

Stéphane Téral
Principal Analyst, Infonetics Research
Service Provider VoIP, IMS, and Mobile Infrastructure