Vodafone and Orange Unveil Outsourcing Deals With Nokia Siemens and Ericsson

In order to bring the operating costs down in today’s frosty economic environment, the mobile network operators Vodafone and Orange announced that they are outsourcing their mobile networks operation and maintenance.

The duo announced the contracts separately, with Orange inked a five-year long contract on its mobile networks operations with Nokia Siemens Networks (NSN), while Vodafone penned an outsourcing deal with the Ericsson for both mobile network operations and maintenance.

The deal between Orange and NSN will see transfer of around 230 staffers from the former to latter with another 240 employees will be transferred to the first line maintenance subcontractor.

On the other hand, seven-year long term contract between Vodafone and Ericsson will include transfer of as many as 350 employees from Vodafone to Ericsson, with the process is scheduled to kick off from May.

Citing the benefit of the deal in controlling costs and offering better services to the customers, Jeni Mundy, Chief Technology Officer at Vodafone UK, said in a statement, “We see this as a strategic long-term relationship, ofafering real operational and financial benefits allowing us, over time, to reinvest savings in delivering new products and services for customers”.

These arrangements would offer a win-win situation to both the mobile operators and the outsourcing companies, while mobile operators could bring their operational and maintenance cost down, these deals provide the much required boost for the Ericsson and Nokia Siemens, who are facing tough competition in networks equipments domains from the Chinese firms Huawei and ZTE.

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Our Comments

Ironic to see that Vodafone and Orange are partnering with Nokia Siemens and Ericsson, three names that have or are still involved in mobile phone manufacturing. The cost cutting exercise will not see direct job losses but it could well start a new wave of outsourcing processes, especially at O2 and T-Mobile.

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