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

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


Telecom carriers spent $62 billion on outsourced services in 2008,
with plans to increase

 

Campbell, CALIFORNIA, May 7, 2009—Market research firm Infonetics Research recently released its Equipment Vendor Services to Service Providers report, which tracks the revenue vendors derive from the services they offer to their service provider clients, including network maintenance, build, planning and design, operations, application service delivery, service provisioning and activation, and billing. Highlights from the market research report follow.

“Our analysis of vendor financial reports clearly shows major double-digit increases year over year for equipment vendor service revenue, which more than offsets product revenue declines for some vendors in the Tier 1 category (vendors with $7 billion or more in annual revenue). As a result, worldwide service revenue from equipment vendor services to service providers hit $62 billion in 2008, up 17% from 2007, and will continue to increase as service providers outsource more tasks so they can continue to cut opex and beef up their margins. In the equipment vendor services market, no one sees a slowdown during this global recession; instead, they all see more opportunities.”


Stéphane Téral, Principal Analyst, Mobile and FMC Infrastructure, Infonetics Research


MARKET RESEARCH REPORT HIGHLIGHTS

  • Facing pressure to quickly innovate with new services and to cut operational expenditures, service providers are increasingly outsourcing their day-to-day network operations to professional service houses
  • The top revenue-generating tasks outsourced by service providers in 2008 include network maintenance, application service delivery, network build, and network planning and design
  • The vendor services to service providers market is driven by traditional IT integrators and the telecom vendor integrator arms of Tier 1 vendors, including Alcatel-Lucent, Cisco, Ericsson, Fujitsu, HP, Huawei, IBM, Microsoft, Motorola, NEC, Nokia Siemens, and Nortel
  • In 2008, IBM continued to lead the equipment vendor services market
  • Nokia Siemens Networks gained market share in 2008, while the other top 5 vendors maintained or dropped a point or two of worldwide market share
  • The bulk of the growth for the vendor services to service providers market comes from Asia Pacific, with major outsourcing deals such as Bharti Airtel in India
  • Worldwide Tier 1 vendor service revenue from equipment vendor services to service providers jumped significantly in 2008, due mainly to strong activity in India as well as the combination of smaller deals in Europe
  • Between 2008 and 2013, the Central and Latin America region is expected to gain share at the expense of North America and EMEA


REPORT SYNOPSIS

Infonetics’ equipment vendor services report tracks the revenue vendors derive from the services they offer to their service provider clients, including network maintenance, build, planning and design, operations, application service delivery, service provisioning and activation, and billing.


The report includes market size, market share, analysis, customer wins, and forecasts through 2013 for Tier 1, 2, and 3 equipment vendors in North America (US and Canada), EMEA (Europe, the Middle East, and Africa), Asia Pacific (including Japan and Australia), CALA (Central and Latin America, including Mexico), and worldwide.


DOWNLOAD OR BUY THIS REPORT

If you're already a member of the Infonetics online portal, log in at http://www.infonetics.com/login


Or create a new account here: http://www.infonetics.com/cgp/newaccounts.asp


Once on the portal, go to Download Research or Download Sales Lit, then select ACROSS COVERAGE AREAS to find this report.


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 serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.


Infonetics is now on Twitter; follow us at http://twitter.com/infonetics.


Join Infonetics’ online research portal to access free content and more at: http://www.infonetics.com/cgp/newaccounts.asp


# # #

"In the equipment vendor services market, no one sees a slowdown during this global recession; instead, they all see more opportunities."

Stéphane Téral
Principal Analyst, Infonetics Research
Equipment Vendor Services to
Service Providers