The telecom sector is currently witnessing a rapid rise in competition among the telecom operators which in turn is affecting its profitability and growth. Decline in average revenue per unit is also impacting the telecom industry. Telecom operators are under constant pressure to manage their capital expenditures in network deployment to reduce their operating costs. IT service providers help telecom operators achieve these goals. Thus, the market has currently observed telecom operators outsourcing value-added services comprising content services, next generation communication services and commerce services to IT service providers.
This helps telecom operators to curb their operating expenses. Outsourcing will facilitate the telecom operators to dedicate more efforts towards revenue generating activities, such as customer acquisition. Thus outsourcing is a very crucial development without which the telecom operators would lose revenue in both; marginalization of bearer services (voice and data) and other Value Added Services (VAS).
Telecom IT services offered by IT service providers to telecom operators enables the operators to function their business more competently. IT services facilitates telecom operators to deliver the telecom services efficiently and effectively. Moreover, IT services enable operators to understand customer expectations and thus reduce customer churn by enhancing customer service. Increasing need to remain competent and rising financial pressures faced by the telecom operators are the factors driving the telecom IT services market.
Source: Transparency Market Research