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May 01, 2008
Infonetics Research: Telecom carriers spent $57B on outsourced services in 2007
(Marketwire Via Acquire Media NewsEdge) CAMPBELL, CA, May 1 / MARKET WIRE/ --
Facing pressure to quickly innovate with new
services and to cut operational expenditures (opex), service providers are
increasingly outsourcing their day-to-day network operations to
professional service houses, says a new report from analyst firm Infonetics Research.
Driven by traditional IT integrators and the telecom vendor integrator arms
of Alcatel-Lucent, Cisco, Ericsson, HP, Huawei, IBM, Microsoft, Motorola,
NEC, Nokia Siemens, Nortel, and others, the professional services shops
provide everything from vendor network integration, network assessment,
monitoring, and network design to the service providers who hire them.
In 2007, service providers around the world spent $57 billion on such
outsourced services, according to a new report by Infonetics Research,
Professional Services to Service Providers: Market Share and Forecast.
"For equipment vendors looking to increase their market share or get into
the professional services market, Asia Pacific is the place to be, as
carrier spending there represents about a third of the worldwide market.
There is strong activity in India with multi-billion dollar outsourcing
contracts, and once China's telecom restructuring is complete, we expect
new deals to emerge there as well. Africa and Latin America are the next
big opportunities in this market. Once the competitive landscape in Mexico
and Brazil becomes more consolidated with a few large players combining to
reach economies of scale, they too will look to further cut opex by
outsourcing key professional services," said St?phane T?ral, principal
analyst for service provider VoIP, IMS, and mobile infrastructure at
Infonetics Research.
Other highlights from the report:
-- Worldwide service revenue from professional services to service
providers jumped 25% from 2006 to 2007
-- In the 5 years from 2007 to 2011, worldwide revenue is expected to
increase 49%
-- Worldwide carrier opex is estimated to have hit $1 trillion in 2006,
with carrier spending on equipment vendor professional services accounting
for just 4.5%, suggesting strong potential growth ahead
-- Tier 1 vendors (those with annual revenue larger than $7 billion),
take in the lion's share of revenue from professional services to carriers,
representing 83% of the market in 2007
Infonetics' report tracks the
revenue vendors derive from the services they offer to their service
provider clients, and includes worldwide and regional market size, market
share, and forecasts through 2011. Vendors tracked include Alcatel-Lucent,
Cisco, Ericsson, HP, Huawei, IBM, Microsoft, Motorola, Nokia Siemens,
Nortel, and many others.
For report
highlights, log in to Infonetics' online portal from www.infonetics.com
(see Total Telecom and Datacom area). For sales, contact Larry Howard, vice
president, at [email protected] or +1 (408) 583-3335.
Infonetics Research (www.infonetics.com) is an international market
research analyst firm specializing in the Communications Industry. Services include
quarterly market share and forecasting, end-user survey research, service
provider survey research, and service provider capex analysis.
Press Contact:
St?phane T?ral
Principal Analyst, Service Provider VoIP, IMS, and Mobile Infrastructure
Infonetics Research
(408) 583-3371Email Contact
Copyright ? 2008 Marketwire
(source: http://www.tmcnet.com/usubmit/-infonetics-research-telecom-carriers-spent-57b-outsourced-services-/2008/05/01/3421496.htm)
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