November 25, 2011: A research was conducted by PricewaterCoopers and Oracle on the Information technology priorities of the communications service providers in the European region. Survey results showed that 60 % of the Chief Information officers (CIO’s) are spending half of their budget on operational expenses and that they will think of outsourcing and standardization in the next year.
The report predicts that a huge shift to commercial off the shelf (COTS) application will pose a serious danger to in house Information Technology workers who do not move to the vacancies with the IT companies. However the report predicts that functions such as Billing, mediation, and reporting are more mission critical in nature and they will not be outsourced.
The above said kind of outsourcing has gained popularity among the players in the mobile industry including Nokia, Vodafone, O2 etc. Most of them are opting to outsource their IT functions to IT service providers such as Accenture, Tata Consultancy services and Amdocs.
The research report indicates that 80 per cent of the Chief Information officers have plans to upgrade their Customer Relationship Management (CRM) systems in 2012 to make themselves available for more strategic issues such as portal and content applications.
According to Gordon Rawling, senior marketing director at Oracle, since CIOs are considered as agents of change in business, change is coming in more frequently. It is their responsibility to ensure that their business is running as efficiently as possible.
O2 has partnered with IT service provider 2e2 to introduce a joint venture company, O2 Unify. O2 claims that the partnership gives them the opportunity to outsource their IT and communication jobs to a single service provider which drives efficiency and savings up to 30 per cent. According to Ben Dowd, business director at O2, the partnership and the outsourcing is based o what customers have demanded and that 30 per cent of the bids require converged solutions. With the partnership it is possible for O2 to provide what exactly the corporate customers are looking for.
Rawling says that mobile operators must make use of IT to focus on the customer care and that COTS can be a help in that direction.