The IT and network services arm of BT Group Plc said that around 25% of its network outsourcing contracts won in its most recent financial quarter involved running the client’s mobile as well as their fixed line networks.
Nigel Springhall, general manager of mobility partners at BT Global Services, told ComputerWire that the rising cost of mobile communications is encouraging them to outsource to third parties.
Until recently, organizations saw the cost of their communications decline, but the switch to mobile has seen them rise again, he said. We find that most of our corporate customers are seeing their mobile costs increase by between 12% and 35% and this is the first driver for them to look at outsourcing.
The cost pressure is greatest on multinational companies according to Springhall – particularly those with a globetrotting workforce such as big consulting firms, which incur high roaming charges. Roaming can account for as much as 40% of some multinationals’ mobile bills, he claimed.
Earlier this week, financial services company ABN AMRO announced it was handing over the operation of its mobile network and devices supporting 22,000 employees in 17 countries to Sympac, a managed services subsidiary of Dutch operator KPN.
BT Global Services said that it currently manages mobile networks for up to 30 corporate customers, including brewing giant InBev, with whom it announced a 175m-euro ($211m) deal last month to manage both its mobile and fixed networks. Sprinhall said that BT Global Services is targeting growth of 30% in its mobile outsourcing business with corporate clients this year.
Chris Abell, head of managed services at network services company Energis, said that a lot of corporate clients are looking to outsource bother their fixed and mobile networks under a single outsourcing engagement. He believes that this means it will be hard for mobile operators such as O2 and Vodafone to handle this sort of deal as they lack the fixed line expertise.
It will be difficult for mobile operators to take over outsourcing deals for fixed and mobile networks, so we are looking to work in partnership with them, he said. There are lot of ITTs [invitation to tenders] in the marketplace at the moment that suggest that clients are looking to outsource fixed and mobile together.
One of the interesting features of the KPN deal with ABN AMRO, is that the vendor is able to utilitize the various mobile network operations owned by KPN to provide favorable access rates for the client. Neither BT or Energis own their own mobile network, but both believe that their operator-independent status puts them in a strong position.
Sprinhall said: In some situations, where the client’s footprint suits the operator, we will be disadvantaged. But operators like Vodafone will run into difficulties in delivering outside their core footprint.
