The value of sourcing

Bandwidth-hungry applications coupled with pressure regarding costs and operational efficiencies has made sourcing a critical component of service providers’ overall business strategy and priorities. But how are customers’ current and future needs shaping sourcing deals?

Cost savings and cost avoidance

Cost savings and cost avoidance are not new concepts. However, in today’s strained economic environment, service providers are under increasing pressure to satisfy the ever-growing demand for high-bandwidth content and services, while keeping costs under control. To increase profit margins and focus on bottom line results, service providers have to change the way they view and approach their business.

As a service provider ourselves, arriving at cost-effective, customer-oriented solutions demands a change of perspective – one that necessitates either a reduction in existing operational costs or avoidance of future cost investments.

Improve efficiency and service offerings

The skills, tools and infrastructure needed to deploy and manage voice services in-house can be cost prohibitive and require ongoing investment to keep pace with changing market conditions. With continued pressure to “do more with less,” customers are increasingly open to look to other service providers to manage and operate back-office functions so they can focus on their core business. Aside from better allocating resources, through sourcing, customers can:  acquire enhanced capabilities without execution time delays and associated deployment risks; ensure these capabilities evolve with changing business models; and, decrease the time  to introduce new voice services into the market.

Attract and retain customers

Consumer demand and expectations are undoubtedly on the rise. Networks must evolve to deliver the kinds of services and applications users expect; therefore, service providers must invest in that evolution in ways that not only address the needs of the moment but also position them competitively and technologically for the future.

New business models are critical to attracting and retaining customers as well as achieving these new efficiencies. By leveraging technological innovation and shifting focus towards application enablement, service providers can embrace new revenue streams, ultimately increasing profitability while providing end-users with the services they demand.

About the author:

Tim Sherwood
Vice President, Market Development and Regional Alliances - Tata Communications
Timothy Sherwood is the Vice President of the Market Development and Regional Alliances team within Global Voice Solutions for Tata Communications. In this position, Mr. Sherwood is responsible for leading a worldwide, overlay sales team, which is responsible for developing key termination markets around the globe, expanding business with retail service providers, as well as evaluating and driving strategic partnership opportunities.