Wireless Networks Outsourcing Main Operations
Wireless Networks Outsourcing Main Operations
It has been standard for numerous years for small and large organizations to subcontract their peripheral operations; however, the paradigms of outsourcing may be taking a tilt now. March 18th discovered a news from Vodafone that they have chosen to outsource the supervision of their big wireless network in the UK to none other than Ericsson. In a different report that reached the media roughly the same time, Orange network made an identical contract with Nokia.
Previously, firms have largely been afraid to subcontract their primary activities as that is like giving away your strength and cash cow into the hands of others. In addition, subcontracting of primary competencies is also sometimes unfavorable as it makes you sacrifice any proficiency you would have accomplished otherwise by doing it internally. Still, these British wireless operators are now using their entire capabilities on marketing and sales.
It’s been announced that the Vodafone-Ericsson contract would run for seven years and was being considered for around 9 months. The organization has high hopes this deal will result in larger cost efficiencies over the entire lifecycle of the deal. Furthermore, the beauty of this contract is that Vodafone won’t lay off staff; the deal has been set up such that the workers will go to Ericsson and work under their management from this year. Vodafone desires to expand its product base and services with any financial savings that are achieved as a result of this deal.
In the other deal, Orange has arranged a similar transfer of employees with Nokia, where the latter will inherit over 200 employees and will manage the Orange network for the following 5 years. It deserves citing here that Vodafone previously subcontracted its activities in Netherlands to Ericsson roughly three years back.
In the future, it is extremely probable that wireless providers will try to set up a single platform to manage a large network that can be utilized by many service providers. I don’t see that happening in the near future but we can’t say for sure; recession can drive companies to change their policies.
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Wireless Networks Outsourcing Main Operations / Author: Mohsin Khan
