Dog-eats-dog competition and razor thin profit margin will make wireline and wirless carriers go for outsourcing in a big way. To remain profitable by the close of 2007 these telecom providers will spend more than USD 198 billion on outsourced services. Over the next five years the outsourcing spend can go up to $1 trillion.
This sensational revelation comes from the research and consulting firm, Insight Research Corp. "Service Bureaus, Outsourcing and Telecommunications Networks 2007-2012" it stated that though telecom providers have given little value to outsourcing before but due to prediction of lower margins along with possible threat from voice over IP is forcing them to focus more on using outsourcing as part of a transformational strategy and less on achieving incremental cost improvements.
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