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Infonetics Research: Telecom Outsourcing, Managed Services a $76 Billion Opportunity by 2016

Market research firm Infonetics Research released excerpts from its latest Service Provider Outsourcing to Vendors market size, market share, and forecast report, which tracks the revenue vendors derive from the services they provide to their carrier customers.

ANALYST NOTE

“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% higher than expected, with all OEM vendors reporting healthy growth in outsourcing, professional, and managed services,” notes Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research. “This gives us pause to ask what would happen to some of these vendors if they didn’t have a presence in services.”

CARRIER OUTSOURCING HIGHLIGHTS

  • The service provider outsourcing market is on track to reach close to $65 billion worldwide by the end of 2012, an 11% increase 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) is forecast by Infonetics to outpace the overall outsourcing market, growing at a healthy 8% CAGR through 2016
  • A combination of large deals in Africa, such as Zain/Ericsson, 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
  • Traditional telecom vendors Alcatel-Lucent, Ericsson, Huawei, and Nokia Siemens Networks manage about 1/3 of the world’s subscriber base, up 29% in just the last 6 months

CARRIER OUTSOURCING REPORT SYNOPSIS

Infonetics’ service provider outsourcing report provides worldwide and regional market size, market share, forecasts, analysis, and trends for service provider fixed-line and mobile network outsourcing to vendors. The report tracks the revenue that vendors derive from performing network planning and design, building, maintenance, operations, application service delivery, service provisioning and activation, and billing services for network operators.

Companies tracked in the report include Alcatel-Lucent, Ciena, Cisco, Ericsson, Fujitsu, Hitachi, HP, Huawei, IBM, Juniper Networks, Microsoft, Motorola, NEC, Nokia Siemens Networks, Tellabs, UTStarcom, ZTE, and others. To buy the report, contact Infonetics Sales: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

RECENT AND UPCOMING RESEARCH

Download VENDOR SERVICES or SERVICE PROVIDER OUTSOURCING report highlights, tables of contents, and prospectuses at http://www.infonetics.com/login, or Infonetics’ Publication Calendar at http://bit.ly/zwjcRs.

TO BUY REPORTS, CONTACT SALES:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1 408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

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