Analysis of the existing telecom managed services business model and development of a new model

Abstract

Global Telecommunications market has grown very high in the past decade. So are the complexities. The movement toward a converged telecom world has drastically increased the market and competitive pressure for the Service Providers (Operators). Operators are looking for solutions that save money while providing the most for their existing investments. Further, the increased competitive pressure forces the operators to look for solutions that enables them to market newer and differentiated services while still focusing clearly on increasing customer service. This combined need of solutions is very difficult to handle and resolve. Increasing Competition in the operator space is forcing them to identify the core business areas and to concentrate on them while outsourcing the non-core activities. The concept of non-core activities has also changed over the years. Network Operations, which has been considered a core activity by operators for many decades is slowly becoming a non-core activity with many operators outsourcing it. IT and Call Centre operations are outsourced by almost all operators. Operators have realized that the outsourcing partnerships are exciting to work with and the way toward business transformation. Beyond doubt the concept of strategic outsourcing in Telecom industry has changed the context of doing business. In fact, it has brought in huge changes across the Telecom value chain. More and more telecom operators are planning for strategic outsourcing and Outsourced Managed Services has become the buzz word in the Telecom industry. However, it is still unsure that whether the changes in the business model brought in by the Outsourced Managed Services has provided correct benefits to each of the stakeholders across the Telecom Value Chain. Many researches has been done in the area of pros and cons of managed services operations but not much has been focused about the payoff the model provides across the different entities across the telecom value chain. This is one very important area to concentrate as the sustainability and growth of the multi-billion dollar outsourced managed services industry lays in the payoff it provides across the value chain. This project analyses the payoff concept in detail. The research involve data gathered from primary and secondary sources and analyses of the data to form a meaningful result regarding the payoffs and its improvements considering the needs of the high growth managed services scenario across the world. The project gets into detail about the need, the growth, the current scenario and the future challenges of the managed services outsourcing.