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Infonetics: Full-scale Outsourcing by Telecom Carriers Pushes Managed Services Market to New Heights

Companies mentioned in this article: Infonetics Research

CAMPBELL, Calif. -- (BUSINESS WIRE) -- Market research firm Infonetics Research released excerpts from its latest Service Provider Outsourcing to Vendors report, which tracks the revenue vendors derive from the services they provide to their carrier customers.

The report tracks both the overall network outsourcing market as well as the fast-growing managed services segment within it, also referred to as ‘full-service outsourcing,’ where an equipment vendor takes over an operator’s entire infrastructure on an end-to-end basis over an extended period, including network maintenance, operations, planning and design tasks.


“At this point, it’s hard to find new large outsourcing deals unless China comes on board, which may eventually happen due to the ongoing discussion about 4G network sharing,” notes Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Téral continues: “As a result, last year was marked by musical chairs: Huawei and ZTE picked up some deals, while Alcatel-Lucent and Nokia exited some unprofitable contracts. But overall, demand for managed services with a strong focus on user experience remains unabated.”


  • In 2013, network equipment manufacturers outsourced by service providers to perform network services earned $68.1 billion worldwide, up 3.8% from the year prior
  • Ericsson held tight as the service provider outsourcing revenue leader in 2013, while
    HP leapfrogged IBM to take the #2 spot
  • #4 Huawei continued its ascent, gaining 2.4 percentage points and chalking up the strongest year-over-year revenue growth of any vendor
  • Growth in the overall market moderated in 2013 due to a combination of forex for Alcatel-Lucent, Ericsson, and Nokia, and major contract restructuring at Alcatel-Lucent and Nokia
  • The managed services portion of the outsourcing market, which includes network maintenance, operations, planning and design, grew 6% in 2013 to over $36 billion and is forecast by Infonetics to top $45 billion by 2018


Join analyst Stéphane Téral June 5 at noon EDT for How to Get the Best Out of DAS, Small Cells, and WiFi, which analyzes the future of distributed antenna systems (DAS) and their relationship to small cells, remote radio heads (RRHs), and WiFi. Attend live or access the replay:


Infonetics’ service provider outsourcing report provides market size, market share, forecasts through 2018, and analysis for service provider fixed-line and mobile network tasks outsourced to network equipment manufacturers. The report tracks network planning and design, building, maintenance, operations, application service delivery, service provisioning and activation, and billing services. Vendors tracked: Alcatel-Lucent, Ciena, Cisco, Ericsson, Fujitsu, Hitachi, HP, Huawei, IBM, Juniper, Microsoft, Motorola, NEC, Nokia, Tellabs, UTStarcom, ZTE, others. To buy the report, contact Infonetics:



Visit to register for upcoming webinars, view recent webinars on demand, or learn about sponsoring a webinar.

  • Unlocking Revenues with Carrier Ethernet 2.0 Wholesale E-Access (May 29: Attend)
  • How to Get the Best Out of DAS, Small Cells & WiFi (June 5: Attend)
  • Service Provider Outsourcing: How Far Will it Go? (July 8: Sponsor)
  • Mobile Network Optimization: What's Left? (Sep. 11: Sponsor)


N. America (West), Asia Pacific: Larry Howard,, +1 408-583-3335

N. America (East, Midwest), L. America: Scott Coyne,, +1 408-583-3395

EMEA, India, Singapore: George Stojsavljevic,, +44 755-488-1623

Japan, South Korea, China, Taiwan:


Infonetics Research ( is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides at

Copyright © Business Wire 2014

Infonetics Research
Stéphane Téral, +1 408-583-3371
Principal Analyst, Mobile Infrastructure and Carrier Economics
Twitter: @infonetics