Saturday, September 08, 2007

IDC: Telecoms outsourcing mkt set to grow 14.5%/yr - Brazil

Brazil's telecoms outsourcing market is expected to grow 14.5% to 2bn reais (US$1.01bn) in annual revenues by 2011 from 971mn reais in 2006, according to a recent report by US tech consultancy IDC.

The market includes three main areas: data service management, voice outsourcing and full outsourcing. The latter is in fact set to grow 20-30% a year in Brazil and is growing faster than telecoms outsourcing such as data and voice services, IDC analyst Alex Zago told BNamericas.

For IDC, full telecoms outsourcing includes the management of private branch exchanges, infrastructure supply and network maintenance so as to ensure 24-hour service.

For many Brazilian operators full telecoms outsourcing "is new terrain, as in the past they focused more on gaining revenues from traffic," Zago said.

The service is a growth area because companies are investing to ensure higher performance and reliability of IP networks. With IP, it really makes sense to think of voice and data as a single service, the analyst added.

Full telecoms outsourcing used to be directed mainly at large banks, but it is now increasingly a reality for a wide range of sectors, especially manufacturing, he said.

In the future, Zago believes the public sector could be a strong one for this service in Brazil.

"In other countries such as Mexico we have already seen that the government no longer buys [telecoms] infrastructure and this could happen in Brazil because there is no need for the government to buy infrastructure such as routers, switches and telephony equipment," he said.