Outsourcing OSS (cont'd)

A third, growing approach takes on a utility computing model where carriers would pay-per-use for access to various OSS applications and transactions. Neustar, for example, which handles LNP provisioning, is one example of a utility-computing type of outsourcer. Utility computing is growing in enterprise circles as an interesting option, but for most OSS functions, the uniqueness from carrier to carrier makes this model challenging, at least in the near term.

In fact, IBM's Wiess explains that while any of these three models would seem to make sense as great offerings for the telco sector, this isn't generally true. He says his expectations for OSS outsourcing business are not very high today. This, he says, is largely because the folks making the decisions – operations and IT – run into conflicts and concerns over employment and, once again, a perceived or very real loss of control. One area Wiess says may hold promise is in helping to offload aging Bellcore/Telcordia applications to help free up carrier resources to focus on rolling out new services and infrastructure. Also, smaller carriers that can't afford to build their own new-generation OSS infrastructure are likely takers, though admittedly too small for a large player like IBM.

The Upside
Even if the choice to outsource is made, success requires a high level of focus and determination. A source inside Sprint says that “to make it work, you have to be committed. You have to have all of your processes ready to go so you don't kill your partner with change requests. But it's really valuable to improve your processes – it will bring a lot of efficiency and help you realize the [promised] economies of scale.”

The source also suggests that with a strong outsourcing relationship a carrier is more likely to succeed in consolidating. The outsourcing partner can provide more reach and resources than a carrier can generally provide itself and should not have to hire. “It was amazing how fast we could act,” says the source, explaining that technical resources abroad are “phenomenal in their savvy and discipline” and that the success of Sprint's national network rollouts has been in no small part due to help from the outside.

Positive and Negative
Outsourcing's upside factors are at once positive and negative – positive for the business, negative for those decision-makers looking to protect their own. It isn't easy for educated, experienced people in leadership positions to swallow the fact that folks outside their organizations – and often outside their home country – can do a better job than their own teams. Further, people have careers and personal relationships to protect, which will make them unwilling to surrender responsibilities or let close colleagues go. Ultimately, if the decision to outsource isn't made at the top of the organization and passed down as mandate, outsourcing OSS is likely to remain a stop-gap measure resorted to only when it's time to trim expenses and there's nowhere else to turn.

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