Telecom service provider managed service revenue dipped 1.4 percent in the first half of 2013 from a year ago, said Infonetics Research.
Despite China’s limited outsourcing activity, Asia Pacific is the second largest outsourcing and managed services market in the world — behind EMEA.
Managed service deals in India — Bharti Airtel, Idea Cellular, Aircel, Vodafone and Reliance Communications – have contributed to the growth.
Telecom equipment vendors are now managing 45 percent of the world’s subscriber base, up from 33 percent 6 months ago.
Operations outsourcing is projected to grow at an 8 percent compound annual growth rate (CAGR) from 2012 to 2017.
Major managed service deals include Reliance Communications 8-year, $2 billion managed services contract with Alcatel-Lucent and Ericsson, Tele2 Netherlands’ agreement with NSN to build an LTE network, du’s 5-year managed services deal with Huawei, and T-Mobile Poland’s 3-year contract with NSN for billing system development and maintenance.
According to Infonetics, the other factors for the marginal decline in managed services growth include forex for Ericsson, year-over-year revenue declines at IBM and HP, NSN for various reasons, and growth at Alcatel-Lucent and Huawei.
Increase in mobile network outsourcing deals will drive revenue to $79 billion by 2017 as mobile operators try to keep Opex under control.
