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Outsourcing: A vital ingredient in Europe’s mobile data market
Publication: 03.07.2007 by Jody Delichte, Head of Marketing, End2End
Over the past couple of years the European market has experienced an explosion in the outsourcing of mobile data propositions. In early 2006, proprietary research conducted by End2End showed that 45% of mobile operators in Europe were using outsourced solutions compared with 35% only 6 months earlier. These numbers have continued to steadily increase in 2007.
Not only has the amount of outsourcing changed, so too has the nature of outsourcing. No longer are mobile operators outsourcing technology only, many are also outsourcing key business processes such as content sourcing, technical & retail content management, content provider management, and reporting & settlement.
Take Vodafone UK as an example. Vodafone UK was one of the first European mobile operators to outsource a mobile data proposition with the launch of their Vodafone live! Games Arcade. By outsourcing the hosting and management of the solution as well as content upload and management, Vodafone UK was able to launch new services typically within 2 weeks, as well as ensuring high quality service delivery with consistent availability above 99.8%.
Following Vodafone UK’s success, a number of other Vodafone companies in Europe and around the world chose to outsource their own mobile data propositions. Vodafone UK decided to expand their outsourcing to include additional content processes, enabling them to increase cost effectiveness, maximise profitability and maintain focus on their core business – their end-users.
Another recent example of outsourcing is Optimus in Portugal. This leading-edge operator was the first in Europe to launch a fully outsourced mobile data solution in late 2005. This included a Content Delivery Solution and comprehensive Content Services which consisted of content sourcing, content provider management, technical content management, retail content management, campaign management and reporting & settlement.
As a result of outsourcing, Optimus was able to reduce their daily technical, marketing and content-related interfaces from more than 70 to a single interface. They also benefited from a reduction in their marketing headcount from 50-60%, cost savings in technical operations and an increase in mobile games revenue of 48% over a six month period.
The benefits of outsourcing mobile data propositions are clear and these tangible benefits clearly demonstrate why more and more mobile operators are choosing to outsource technology and content-related processes. In fact, an increasing number of mobile operators across Europe are now demanding that solution providers offer their solutions as managed services or work with a managed service provider to do so.
Outsourcing is not just a trend, it is a vital ingredient in the successful delivery of competitive mobile data propositions that maximise profitability. If you would like to learn more about how outsourcing of mobile data propositions can benefit your company, contact sales@end2endmobile.com.
