MENA Telecoms’ Transactional Approach Undercuts Outsourcing Initiatives – Oliver Wyman Report

Dubai, United Arab Emirates - Tuesday, June 11th 2013 [ME NewsWire]

(BUSINESS WIRE)-- An ad hoc approach to IT outsourcing by many MENA telecom operators has led to results below expectations, according to a new study from Oliver Wyman, “Maximizing Value from IT Outsourcing.” 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,” notes the report’s author, Stefan Kimmel, an Associate Partner in Oliver Wyman’s Dubai office. “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.”

About Oliver Wyman

From the firm's offices in Dubai, Riyadh, and Abu Dhabi, Oliver Wyman serves clients in the United Arab Emirates, Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, and beyond. Our MENA-based consultants are recognized industry experts representing 24 nationalities and speaking 17 languages.

Oliver Wyman is a global leader in management consulting. With offices in 50+ cities across 25 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC]. Follow Oliver Wyman on Twitter @OliverWyman.

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