Telecom is the one of fastest growing sector in the world and hence The telecommunications industry is the sector that is arguably under greater pressure
than any other to drive greater efficiencies in its IT and business processes is. Global operators are trying to take out as much cost as possible from their organizations as they try to eat into the debt mountains they accrued from acquiring 3G licenses, M&A activity and other infrastructure investment in the late 1990s.
Market dynamics in Telecom business vendors:
The need for greater efficiencies in IT and business processes has driven high growth in outsourcing investment in the telecoms sector. Operators have handed over to third-party vendors many aspects of their network and computing Hardware infrastructure, billing, messaging, customer care and mediation software systems, and even the overlying business processes.
Competitive dynamics:
The most successful vendor over the last two years in this area has been IBM Global Services. Of the $26bn of IT infrastructure contracts announced by telecoms companies tracked by Business Insights since the beginning of 2002, IBM was awarded $9.01bn, giving it a share of 34% (Table 9.14). This was driven by major awards from Qwest Communications ($2bn), Sprint Corp ($2bn estimated), Nextel ($1.2bn) and Embratel ($1bn). In second place was Accenture, which took a 14% share of the $26bn of contracts, with its awards during the period valued at $3.7bn. HP ranked third with 9.4%, followed by Computer Sciences Corp (6.7%), EDS Corp (5.1%) and CGI Group in sixth place with 4.6%. At the same time cooperates meets its own competitiveness over the year and year.
