Mobile operator spending on managed services and outsourcing will reach $29 billion by 2014, according to new research from Informa Telecoms & Media.

 

This is driven by convergence of fixed and mobile networks, the world economic slowdown and increasingly competitive developed markets. For all these reasons, mobile operators are forced to concentrate on their core skill sets, assets and expertise in order to survive and are following the wider global trend toward outsourcing.

 

“The ongoing development of mobile services combined with the development of convergent telecommunications will see an increase in opportunities for managed service providers,” said Paul Merry, senior analyst at Informa (News - Alert) Telecoms & Media and head of the company’s managed services research division. “Specifically there will be immense prospects in delivering multiplatform mobile services and advising on developments in the telecommunications space.”

 

Merry said service provisioning support and consultancy are likely to increase: New market entrants are actively targeting the telecommunications space particularly within the MVNO environment. Because of this, service provisioning support is projected to grow 127 percent by 2014, according to Informa.

 

That said, “the global economic situation is not the only driver for mobile managed services and one would be unwise to underestimate the other solid reasons for opting to outsource,” Merry cautioned.

 

Managed services provide opportunities for both developing regions developed regions, according to Informa. In developing regions outsourcing and managed services bring the expertise that may not be endemic within operators in these regions. Meanwhile, in developed markets, the level of competition is a key driver of outsourcing, with any competitive advantage being quickly leveraged to compete on shrinking margins.