Traditional telecom vendors Alcatel-Lucent, Ericsson, Huawei and Nokia Siemens Networks manage about one-third of the world's carrier outsourcing subscriber base, up 29 percent in the last six months.
That's just one finding from Infonetics Research, whose latest "Service Provider Outsourcing to Vendors" market size, market share and forecast report, tracks the revenue vendors derive from the services they provide to their carrier customers.
The research firm predicts carrier outsourcing will be a $76 billion global market by 2016. Other highlights of the report: 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; opex reduction continues to be a chief driver for carriers outsourcing to vendors network tasks such as designing, building, maintaining, billing, etc.; and managed service revenue (the sum of operations, network maintenance, planning and design) is forecast to outpace the overall outsourcing market, growing at a healthy 8 percent CAGR through 2016.
"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 percent higher than expected, with all OEM vendors reporting healthy growth in outsourcing, professional, and managed services," noted 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."
EMEA (Europe, Middle East and Africa) is the largest market for outsourced services, with 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, Infonetics said.