Greenwoods
Communications is focused on the increasing importance to
telcos of outsourcing parts of network build rollout. Outsourcing
was used during rapid network deployment in the late 1990's
to assist in meeting growth targets. It has gained popularity
more recently, as telcos look to make major cost savings.
The concept of 'why do it yourself, if others can do it better?'
has become more common, in reference to non-core business
functions. When the market speeds up, the complexity of technology
will drive outsourcing. Many telcos have cut back on technical
expertise, driving the need to turn to third parties for technology
related assistance.
Greenwoods understands that many telcos have realised their
core business is not building and maintaining networks. Their
core business is providing bandwidth, content and services.
Operators also want to avoid capital costs and make costs
variable - the ability to turn costs on and off, as they need
to use the outsourced service. Reducing and managing costs
remain the number one priority.
Greenwoods
has always lived in the turnkey services market, and about
eight years ago, we completed our first major outsource for
Cable & Wireless, when they outsourced their consumables.
We started handling network materials like cable, connectors,
racks and frames for them. Since then, Greenwoods' outsourcing
business has grown steadily.
One form
of outsourcing that is currently being expanded by Greenwoods
Communications, is taking a network build function, with engineering
staff, workshops and a depot, and running it more efficiently,
returning savings at the same time. Most telcos have traditionally
run these operations reliably, by simply having enough slack
in the system. However, this is no longer a viable option
for telecoms companies that are looking for cost savings.
Non-utilised assets are now regarded as dangerous liabilities,
and many companies would rather see yet-to-be utilised assets
such as network equipment, fibre or network capacity, held
by their nominated suppliers, so they can buy what they need,
when they need it.
The biggest
twist on the cost screw, and the technique that can only be
brought into play by a third party, is to reallocate the staff
on a more flexible basis across several clients. As an outsource
partner, Greenwoods can utilise these resources more efficiently,
reducing the number of heads needed by redeploying work, but
keeping the full facility to back it up.
This offers
the best of both worlds to our customers. The telco still
has the stand-by resources when they're needed, but on a day-to-day
basis some of the original outsourced staff can be put onto
other work.
If you
would like to be contacted to discuss outsourcing further,
please email our Strategic Alliance Team. The Strategic Alliance
Team are senior managers who work on outsource projects for
a number of clients and understand the importance of confidentiality.
Outsource
capabilities
Network build
