Ericsson leads telecom outsourcing services market

Telecom Outsourcing ServicesIHS Technology today said Ericsson is continuing to lead the global telecom outsourcing services market in 2015.

The telecom outsourcing services market rose 3 percent to $69 billion in 2015, according to Stephane Teral, senior research director, mobile infrastructure and carrier economics, IHS Technology.

Ericsson retained its lead in telecom outsourcing revenue market share in 2015, followed by Huawei, HPE, IBM and Nokia Networks.

Ericsson and Huawei reported double-digit revenue growth in managed services in 2015, while IBM and HPE saw declining revenue.

Ericsson says it provides managed services for networks that together serve more than 1 billion subscribers.

Ericsson generated revenue of SEK 81.7 billion from Professional Services, SEK 31.8 billion from Managed Services and SEK 26.3 billion from Network Rollout business in 2015.

The Stockholm based telecom network maker noted that sales growth in segment Global Services was mainly driven by growth in Systems Integration and Managed Services while Network Rollout sales declined.

Ericsson had 66,000 services professionals on December 31, 2015 against 65,000 on September 30, 2015. The number of employees of Ericsson was 116,281 on December 31, 2015.

Telecom network maintenance, build, planning and design are making up 52 percent of carrier outsourcing revenue in 2015.

Managed service revenue—including operations, network maintenance and network planning and design—is expected to grow at a 3 percent CAGR from 2015 to 2020, driven by a mix of operation outsourcing and radio access network (RAN) sharing.

The IHS report tracks the revenue vendors derive from the services they provide to their telecom carrier customers. The report tracks both the overall network outsourcing market as well as the managed services segment.

The telecom outsourcing services market is projected to reach $76 billion by 2020, growing at a compound annual growth rate (CAGR) of 2 percent.

The growth in telecom outsourcing services market will be driven by mobile network outsourcing deals as more and more mobile operators try to keep their Opex under control by removing non-core task and focusing on customers’ experience and information and communications technology (ICT) business, as well as network transformation that requires a merger of IT and telecom network teams.

Baburajan K
[email protected]

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