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survey exploring service providers'

 Amdocs, the provider of customer experience systems, have released the results of a survey exploring service providers' use of managed services to support their operational support systems (OSS).

The survey finds that almost all (91 percent) of service providers view modernization as a key component of OSS outsourcing engagements. Additionally, benefits such as increased service profitability and improved time to market ranked nearly as high as operational cost savings, demonstrating the expanded business value of OSS outsourcing. More than two thirds (67 percent) would prefer to outsource business support systems (BSS) with OSS.

As expected, 88 percent of those surveyed stated that the long-term benefit of outsourcing OSS is improved operational cost-savings. In addition, service providers cited the following benefits could be achieved from outsourcing OSS-all of which are important in today's competitive and challenging economic market:

--  Achieve faster time to market for new services or applications (85 percent); 
--  Increased services profitability (84 percent); 
--  A better customer experience (77 percent); 
--  Business transformation (74 percent);
--  Stronger integration between OSS and BSS (70 percent)

Nearly half of respondents say they outsource at least one OSS function today including network management, provisioning and activation, planning and inventory. Service providers identified future challenges as "swivel chair" automation (time-consuming manual operations), and increasingly complex next-generation network services and technologies. When choosing to outsource, nearly 60 percent favor a vertical model, in which the sourcing partner manages complete functions within OSS, as opposed to sourcing one aspect such as application management, across multiple functional domains.   

"Adopting cost-saving measures like managed services is a good business model in any economy, but more so in today's economy when the pressure for immediate cost benefits is even more pronounced. Service providers are outsourcing important OSS functions to modernize their systems and achieve more seamless integration between their BSS and OSS--two ways to improve the customer experience and competitive advantage," said Michael Couture, head of Amdocs Global Marketing.  Coleman Parkes Research conducted this Amdocs-commissioned survey in April 2009. Its researchers interviewed more than 100 executives with financial and operational responsibility from wireline and wireless service providers in North America, Europe/Middle East/Africa and Asia Pacific