08 June 2007

With increased competition and lower-margin products cutting into their
profitability, wireline and wireless carriers will be spending nearly
$1.4 trillion over the next five years on outsourced services in order
to reduce costs, says a new market research report from Insight
Research. By the close of 2007 alone, wireline and wireless carriers
will be spending more than $198 billion on outsourced services
worldwide.

According to Insight's newly-released market analysis report, until
now, carriers have considered outsourcing to be little more than a
tactical form of reducing the cost of acquiring ancillary services, but
the lower margins associated with voice over IP are forcing carriers to
focus less on achieving incremental cost improvements and instead use
outsourcing as part of a transformational strategy.