Telecom outsourcing market to reach $65 billion in 2012, up 11% over 2011

Telecom Lead Asia: The service provider outsourcing market will reach close to $65 billion worldwide by the end of 2012, up 11 percent over 2011.

By 2016, carrier outsourcing is expected to be a $76 billion global market.

Opex reduction continues to be the chief driver for carriers outsourcing to vendors network tasks such as designing, building, maintaining, billing, etc.

Managed service revenue (the sum of operations, network maintenance, planning and design) will outpace the overall outsourcing market, growing at 8 percent CAGR through 2016.

Telecom vendors such as Alcatel-Lucent, Ericsson, Huawei, and Nokia Siemens Networks manage about 1/3 of the world’s subscriber base, up 29 percent in the last 6 months.

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Zain’s deal with Ericsson in Africa and a flurry of medium-sized deals involving RAN-sharing activity across Western Europe is sustaining EMEA (Europe, Middle East, Africa) as the largest market for outsourced services

“We anticipated that service providers across the board would continue to outsource at an unabated pace, but revenue in the 1st half of 2012 is already 2 percent higher than expected, with all OEM vendors reporting healthy growth in outsourcing, professional, and managed services,” said Stephane Teral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

editor@telecomlead.com

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