Market Trend

Carriers spent $62 billion on outsourced services in 2008

Infonetics Research’s analysis of vendor financial reports 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, according to the research firm.