Overview:
Extremely competitive environment and downsizing trend have forced organizations to think about management of work to gain competitive advantage over other players. Third-party services industry is growing rapidly with organizations recognizing the perks of outsourcing set of activities which are not part of their core business. Network outsourcing is a service wherein organization procures network management and maintenance from an external service provider. Network outsourcing involves number of network infrastructure services such as voice and data carriage, network ad & integration, telephony, consulting services, network system infrastructure deployment & support services and cross functional services. Network outsourcing not only shifts the burden of operation and administration from an organization but also improves productivity with ensuring cost efficiency.
With constant rise in service industry, the outsourcing services have demonstrated immense growth over the period of time. Outsourcing of network services ensures high productivity services by outsourced expertise resources with comparatively less capital engagement. Growing focus on quality of service offered and quality of service experienced is expected to boost the demand for network outsourcing services in coming years. Similarly, increasing telecom traffic volumes have created emergence to boost the productivity of network system. To boost the productivity of network system as well as to enable advanced & next-generation network infrastructure by ensuring cost efficiency, organizations severely looking for network outsourcing agreements with service providers. For instance, In April 2018, the Australian taxation office, awarded an extension of contract to Singtel Optus Pty Ltd., an integrated telecommunication service provider. With effect of this agreement, Australian taxation office is expected to reduce expenditure on network services by more than US$ 50 Mn over the four year contract period. With growing events of such contracts, network outsourcing is expected to experience promising growth in coming years.
With presence of major network outsourcing service providers, North America is standing high among other geographical regions. Number of North American and European service providers are following traction for business towards potential network outsourcing market such as India, China among other developing countries. Most network outsourcing service providers reduce the cost for their clients by locating their human resources in countries such as India, Philippines and China among others having cheaper resources.
The global network outsourcing market is segmented on the following basis:
Key players identified in global network outsourcing market include but are not limited to:
Accenture LLP, Capgemini SE, Ericsson Inc., Alcatel-Lucent Inc., Cisco Systems Ltd., Huawei Technologies Co. Ltd., Siemens Enterprise Communications A/S, International Business Machines Corporation, HCL Enterprise Solutions Limited, Microland Ltd., Global TeleSystems, Inc., Wipro Ltd., Fujitsu Network Communications Inc., Hewlett Packard Enterprise Corporation, Unisys Corporation, AT&T Inc., Sun Microsystem AB and others.
