Even Though numerous organizations have gone the way of subcontracting their secondary tasks while handling their primary tasks internally, a recent contract in the Wireless sector appeared to have altered this formula. Vodafone just did a deal with Ericsson to outsource its operational and maintenance functions on March 18. Similarly, wireless giant Orange has also gone into an outsourcing deal with Nokia.

In past, organizations have largely been unwilling to outsource their primary operations as that is like giving away your specialty and cash cow into the control of someone else. Likewise, it would also strip them of the competitive advantage realized through experience and ages of management. Nonetheless, these British wireless operators are now using their full capabilities on marketing and sales.

Vodafone has been studying this subcontracting alternative since the middle of 2008 and has now gone into a seven-year contract with Ericsson. A Vodafone executive remarked that greater cost efficiency was their principal objective that motivated this decision. Another noticeable matter is that Vodafone staff won’t lose jobs; they will merely work under the new management of Ericsson instead. Vodafone plans to expand its product base and services with any monetary savings that are reached through this contract.

In the other deal, Orange has organized an identical transfer of staff with Nokia, and the latter will take control of over 200 workers and will manage the Orange network for the coming 5 years. It’s worth mentioning here that Vodafone previously subcontracted its operations in Netherlands to Ericsson around three years back.

In the future, it is highly probable that wireless providers will attempt to arrange a single platform to manage a big network that can be accessed by many providers. Though that looks difficult to happen in the near future, a lasting recessionary time period may function as a speeding catalyst in this regard.