OSS Transformation is On the Rise

 ipad-605439_640One expert company has recently released a report, which it called the dawn of a transformational era, where it found that the cable oss outsourcing market is growing at a rapid pace, but that it is in a state of flux with record new deal signings intertwined with high end-of-year terminations (26%). This, and other findings discussed below, was based on the expert’s database of over 1,100 Procurement Outsourcing contracts. There were seven key messages in this report, including the rapid 12% year-over-year growth, but the three we are going to focus on are:

  • The value proposition is transitioning from a cost-focused model to an oss transformation model, where strategic drivers such as market intelligence, supplier relationship management, and operational excellence are gaining more importance
  • The scope of contracts is expanding to a more end-to-end approach
  • The role of oss managed services is growing, with increased adoption of end-to-end platform-based offerings

In the beginning, outsourcing was mainly focused on economics (cost reduction):

  • procure goods and oss transformations at the best prices
  • optimize activities to be cost efficient

More recently, outsourcing has been focused on efficiency (cost avoidance):

  • spend consolidation to drive further impacts (with volume pricing)
  • satisfaction of complex demands
  • quality as well as price (to reduce warranty/return costs and protect the brand)

But now outsourcing is starting to focus on value generation:

  • the outsourcer is trying to become a strategic partner and not just a cost centre
  • the outsourcer is trying to define and drive business outcomes that impact overall growth
  • the outsourcer is trying to predict market trends to help organizations adapt to, and take advantage of, macroeconomic shifts early

How? Outsourcing is becoming more interested in identifying cable inventory planning, tracking and enforcing compliance and risk management, and gathering and harnessing the power of market intelligence.