Comms next for outsourcing, says Gartner

Gartner is predicting cost savings of up to 30 per cent for large enterprises that outsource voice, data and mobile communications.

But the analyst warned that for outsourcing to be successful, telecoms service providers must offer better levels of service, stable pricing and good exit conditions on contracts.

They must also agree to severe penalties if their services fail.

"Providers have to send a clear message that this is going to be cost effective, with contracts where prices are not increasing, and that they are not selling a product at the highest possible price because they have a monopoly," Jean-Claude Delcroix, research director at Gartner, told vnunet.com.

Gartner lists the businesses benefits as cost savings, the ability to implement change more rapidly and reduced complexity of IT networks, particularly when companies merge.

Cost savings will come from moving to cheaper IP services, cutting redundant lines and moving quickly to suppliers that offer cheaper tariffs.

The report also argues that, as networks become more complex, companies will have greater difficulty training and hiring IT workers with relevant IP networking and security skills.

John Irvine, vice president at network services firm Level 3, said: "The advent of IP-based telecoms has made the prospect of outsourcing a much simpler affair."

He added that telecoms service providers can lower their cost bases by using IP-based converged software platforms, and pass on the savings to enterprises while attracting smaller companies.

Delcroix explained that telecoms companies will succeed in the converged service market, but that IT services companies may struggle as they have less experience in dealing with voice traffic and Voice over IP.

"IT service providers are not the best at communications as they do not have the size of network needed or the relationship with the providers," he said.