For service providers, focus has shifted to building and operating next-generation (NG) networks and services. But there remains the issue of legacy networks still accounting for a major share of operating costs. The bulk of services on legacy or TDM networks still require to be managed leading to a manifold increase in network size and complexity exacerbated by the ongoing conflict of business and investment priorities.
An elegant solution to mitigate risk, retain NG priorities, and optimize resources is to carve out legacy networks from the overall network and letting a Managed Services Provider partner manage them.
The idea of managing legacy networks separately may sound ambitious, but is achievable. The transition process has to be managed holistically and key considerations and clear end-objectives must be kept in focus to ensure that the end customer does not feel a dip in service quality even during the transition phase. There are other checks and balances, such as identification of the legacy/NGN network demarcation points, clear definition of roles and responsibilities of the delivery and operation teams, and realignment of OSS/BSS platforms for delivery and management.
An initial reaction to the idea of outsourcing just the legacy part of the network may also be that it is an extra cost to existing operations. However, detailed due diligence will reveal that the benefits realized over a 3 to 5year period are far greater than the first year investment. Together with reduction in costs from outsourcing, process improvements, and recovery of depreciated capital; optimization of space and repurposing of equipment can provide approximately 15- 20% reduction in overall cost of operations.
The potential cost savings, exponential rate of technology evolution and increasing customer expectations make it imperative for the service providers to consider the use of a trusted Managed Services partner. The result will be a quick transition to a reliable, scalable model, enabling them to focus on network strategy and product development.