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Global Managed Services in the Telecom Industry 2012-2016

Global telecom managed services market: 18% CAGR between 2012-2016


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2014-03-05 08:59:03 - Global Managed Services in the Telecom Industry 2012-2016 - a new market research report on companiesandmarkets.com

The Global Managed Services market in the Telecom industry is to grow at a CAGR of 17.78 percent over the period 2012-2016. One of the key factors contributing to this market growth is the contribution of managed services to a reduction in service providers overall expenses. The Global Managed Services market in the Telecom industry has also been witnessing the increasing adoption of cloud-based services. However, the issues concerning the quality of network services could pose a challenge to the growth of this market.

The increasing adoption of cloud-based managed services is one of the emerging trends in the Global Managed Services market in the Telecom industry. Recognizing the growing popularity of the cloud, vendors in the market are currently offering

 

 

managed services for cloud-based environments. Managed services help mitigate the operational risk of moving services to the cloud. The cloud also meets the requirements of enterprises with respect to security, control, and ease of integration. Hence, with cloud-based managed services gaining prominence in the market, adoption of these services by enterprises should increase significantly. Another reason for the anticipated increase in their adoption is the fact that cloud-based services can help enterprises reduce their overall cost and help them manage their resources better.

The reduction in overall expenses that can be gained from using cloud-based services is one of the major drivers in the Global Managed Services market in the Telecom industry. A managed telecom service is a cost-effective means of providing network operators with access to expertise, knowledge, and experience. On this front, operators carry out due diligence about the service vendors and their mutual gains. By outsourcing telecom networks, operators can reduce redundancy costs and produce high economies of scale for both their clients and service providers. Moreover, declining average revenue per user has forced operators to streamline their operations and cost structure by outsourcing less important activities and those activities that add less value. This should encourage operators to adopt managed services because it will help them reduce their capital expenditure and operational expenditure.

The key vendors dominating this space are Ericsson Inc., Huawei Technologies Co. Ltd., Alcatel-Lucent SA, and Nokia Siemens Networks B.V. The other vendors mentioned in the report are Cisco Systems Inc., Hewlett-Packard Co., IBM Corp., Motorola Inc., and ZTE Corp.

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