The Global Market for Telecom Network Outsourcing is Projected to Reach US$68.8 Billion by 2022
Rising Complexity in Network Operations
and Growing Pressure to Reduce OPEX Drive Growth in the Telecom Network
Outsourcing Market, According to a New Report by Global Industry Analysts, Inc.
GIA
launches comprehensive analysis of industry trends, growth drivers, market
share, size and demand forecasts on the Telecom Network Outsourcing market. The global market for Telecom Network Outsourcing is
projected to reach US$68.8 billion by 2022, driven by the ever-growing complexity in telecom network operation, growing
pressure to reduce operational expenditure and the competitive need to focus on
core business activities.
Telecom
network outsourcing is an
established concept, in which a telecom enterprise engages a specialist
outsourcing services vendor to perform various network related functions on a
contract basis. Network functions such as planning, design, roll out,
management and maintenance are awarded as full-service contract to a single
vendor, or only select functions are awarded individually to the contractor in
line with telecom company’s requirements. Ever-growing complexity in telecom
networks, increased need to reduce operational expenditure and the competitive
need to focus on core business activities are some of the key factors driving
demand for network outsourcing services. The outsourcing model enables telecom
enterprises to refocus on core business activities such as delivery of quality
services, while reaping cost, time and operational benefits. Telecom companies
can seamlessly gain from time to market, reduced churn, improved QoS and QoE,
and eventually higher revenues and profitability. At the same time, telecos can
substantially reduce network operational risks, improve network performance,
streamline business processes, and minimize the CAPEX and OPEX in their network
operations. Demand for these services is also driven by availability of
high-quality services from large network equipment companies and specialist
service providers through full-fledged contracts and at flexible pricing
schemes. Telecom enterprises around the world are increasingly contemplating on
network outsourcing model. Various outsourcing strategies including assistance
& consolidation services, network sharing, managed capacity, build, operate
& terminate (BOT), and business migration with complete outsourcing continue
to be leveraged by telecom operators.
Currently,
a significant portion of market growth is driven by mobile networks. Steady
evolution in mobile networking technologies and dynamically changing usage
patterns continue to drive mobile network operators (MNOs) upgrade their networks and services. Since,
upgrading networks on a regular basis is a technologically-driven activity,
requiring full-fledged knowledge and expertise in various aspects of network,
MNOs prioritize network outsourcing services. A majority of MNOs rely on
managed services and professional services for their mobile service networks,
and global leading network infrastructure vendors such as Ericsson, Nokia
Networks and Huawei actively operate in the mobile networks segment.
As
stated by the new market research report on Telecom Network Outsourcing, Europe represents the largest market worldwide. Rest
of World comprising Latin America, the Middle East and Africa, constitutes the
fastest growing market exhibiting a CAGR of 4.8% over the analysis period. Latin
America especially stands out as a major market force supported by the growing
trend towards nearshoring and the region’s advantage in being in close
proximity to North America and the growing availability of a large pool of
skilled professionals with expertise in latest telecommunication technologies.
Major
players covered in the report include Ciena Corporation, Cisco Systems Inc.,
Fujitsu Limited, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd.,
IBM Corporation, Juniper Networks Inc., Motorola Solutions Inc., NEC
Corporation, Nokia Networks, Telefonaktiebolaget LM Ericsson, Tellabs Inc.,
UTStarcom Holdings Corp. and ZTE Corporation among others.
The
research report titled “Telecom Network Outsourcing: A Global Strategic
Business Report” announced by Global
Industry Analysts Inc., provides a comprehensive
review of market trends, issues, drivers, mergers, acquisitions and other
strategic industry activities of global companies. The report provides market
estimates and projections of revenues for all major geographic markets such as
the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and
Rest of Europe), Asia-Pacific, and Rest of World. The report also analyzes the
Network Outsourcing market by Network Type - Mobile Network and Fixed Network.
Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA,
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