Telcos are being squeezed out of the lucrative wide area networking (Wan) market thanks to the superior skills of systems integrators, according to research group Analysys.
A new Analysys report, Competition in Corporate Networking, suggests that the outsoucing market is growing steadily at five per cent a year, and that system integrators are increasingly becoming specifiers of information and communication technology systems.
"The dynamics of the customer relationship are changing and, increasingly, procurement will be handled by systems integrators rather than telcos selling direct to their customers," said Analysys managing director Ross Pow.
"In addition, systems integrators are also grabbing the market for add-on services, but that's not been something the telcos have been too good at selling in the past."
The larger systems integrators like IBM, EDS and CSC, who have a global reach, will have the most success, the report predicts. But there is plenty of room for smaller operators to cream off spending.
"I'm sure systems integrators would like you to think this to be true but I think they are worried about our internet protocol experience," said Katrina Lowes, head of marketing operations at BT.
"The Wan market is huge for us and we've squeezed IBM out of a number of contracts."
But it is not all bad news for telcos. If they build good relationships with systems integrators now they will still get business once it is specified, according to the report.
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