According to the reports, a report from IHS Markit shows that in 2017, the global telecom operator outsourcing market revenue increased by 1% to reach 67 billion US dollars.
Among them, Huawei took the market leading position with a 27% revenue share, an increase of 3.5%. Huawei has achieved double-digit growth in the telecom operator outsourcing market, while other large technology vendors are facing a downturn.
Ericsson and Nokia withdrew from unprofitable outsourcing contracts. Huawei took over most of the outsourcing contracts that Ericsson and Nokia withdrew.
Ericsson holds the second place in the market and accounts for 16% of the global telecom operator outsourcing market. Ericsson said last week that it has identified 42 contracts that will be withdrawn, renegotiated or transformed in nearly 300 managed service contracts. Ericsson has solved 40 of its 42 contracts, increasing its annual profit by about 900 million Swedish kronor. Ericsson's goal is to increase the operating profit margin of the managed services business to 4-6% by 2020.
HPE has a 14% share of the global telecom operator outsourcing market. IBM has a 12% share of the global telecom operator outsourcing market. Nokia has a 10% share of the global telecom operator outsourcing market in 2017.
Stephane Teral, executive director of economics research and analysis at IHS Markit Mobile Infrastructure and Operations, said: "If there is no Huawei doing business in all areas of the professional services business and taking over some of Ericsson's exit contracts, the global market will be in trouble. ”
According to IHS Markit's expectations, the telecom operator outsourcing market is expected to reach $68 billion by the end of 2018, an increase of 2% from the previous year. The market is expected to reach $72 billion by 2020, with a compound annual growth rate of 1.4%.