Increase Business Profitability Via Telecom Outsourcing

Abstract

Increase expenditures and growing numbers of players into the telecom industry have created many challenges to the telecom operators. Majority of the people own at least a mobile phone and the telecom operators are competing among each other to offer better services at a lower price. Most of the telecom operators are striving aggressively in increasing their revenue of their organization. Operators are facing all kind of external forces of increasing expenses result from increased of the employee salary, lower switching cost for the subscriber from one operator to another operator, and etc. Various organization strategies in reducing the expenses are introduced along the way. The more common one are shared services and outsourcing. Shared services are a group of centralized resources in performing the same function and operation for few of the business entities. Outsourcing is to engage with a third party in performing certain internal recurring function or operation of the company with having a contract in place. The objectives of this study were to examine the strategic decision for a telecom operator in opting for outsourcing via managed services model.