MENA telecom sector needs to implement a well defined IT sourcing strategy by creating relationships with vendors that are true strategic partnerships, and employ systematic knowledge management and risk management processes, according to a latest report.
“An ad hoc approach to IT outsourcing by many MENA telecom operators has led to results below expectations,” Oliver Wyman, in its latest report titled Maximizing Value from IT Outsourcing, said.
Based on a survey of IT executives, the report reveals key areas for improvement and recommends adopting a more strategic approach to sourcing, vendor management, and quality assurance.
While promising better IT quality, lower costs, and greater flexibility, among other benefits, IT outsourcing efforts in the Middle East and North Africa have fallen short in practice. For IT operations, the Oliver Wyman survey reveals significant room for improvement in satisfaction with IT quality, cost reduction, and IT flexibility. Indeed, executives rated satisfaction with each of these areas on average no higher than 6 on a 10-point scale.
“We think many MENA telecoms will need to substantially change the way they think about, manage, and execute their outsourcing efforts,” the report’s author, Stefan Kimmel, an Associate Partner in Oliver Wyman’s Dubai office, said.
“To tap the full potential of their outsourcing initiatives, MENA telecoms need to implement a defined sourcing strategy, create relationships with vendors that are true strategic partnerships, and employ systematic knowledge management and risk management processes.”