Market Trend

The rationale for carrier outsourcing

The signs are evident that the communications industry is hitting middle age, according to Yankee Group.

The research firm sees increased consolidation, slower revenue growth, commoditisation of traditional products, pressure on margins and cannibalisation of existing businesses in both developed and emerging markets, although the impact of these trends is different depending on whether they occur in a developed economy or one that is still fast-growing.

Operators worldwide are realising that their long-term competitiveness depends on operational efficiency and agility, according to Yankee Group, and increasingly they are seeking external assistance to achieve these goals. Network maturation is driving a shift from a “build” to an “operate” mentality and market competition is driving focus to customer-facing operations.