British Wireless Networks Adopt Outsourcing Strategy - By: Mohsin Khan

Even Though numerous businesses have gone the way of outsourcing their peripheral operations while managing their core tasks in-house, a recent deal in the Wireless industry appeared to have changed this rule. Vodafone recently arranged a deal with Ericsson to subcontract its operational and maintenance functions on March 18. Likewise, wireless service provider Orange has also entered into a subcontracting contract with Nokia.

In past, firms have generally been unwilling to subcontract their core projects as that is like giving away your strong point and moneymaker into the control of others. Likewise, it can also deprive them of the competitive advantage gained through experience and years of management. But Vodafone and Orange now want to concentrate more on the selling side.

Vodafone has been thinking this outsourcing alternative since the middle of 2008 and has now gone into a seven-year deal with Ericsson. A Vodafone executive mentioned that better cost efficiency was their principal target that forced this decision. Another noticeable matter is that Vodafone staff won’t go unemployed; the deal has been arranged such that the employees will go to Ericsson and act under their supervision from this year. While Ericsson would strive to save operational and maintenance expenses for its client, Vodafone wants to use these financial savings for introducing fresh services and products for its clients.

The Orange-Nokia subcontracting contract will go on for five years and an employee migration has been discussed as in the case of Vodafone. The story probably originated in 2006 when Vodafone successfully subcontracted its Dutch network to Ericsson.

In the future, it is extremely probable that wireless providers will try to arrange a single platform to maintain a big network that can be utilized by multiple providers. I can’t view that happening in the near future but nobody knows; recession can force organizations to modify their policies.

About the Author

Mohsin Khan writes for DistantJob, an IT Outsourcing Service Provider. Let us show you how you may hire Php developer for your information technology jobs.

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