BEIJING, May 1 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, warns Chinese telecom enterprises of potential business outsourcing risks in the latest CCID report. CCID calls for improvements in outsourcing management in the whole industry.
With the fast development of mobile communications, domestic operators will face greater competition pressures. Operators are facing increasing pressure to lower costs and improve core competitiveness. Telecom operation maintenance business outsourcing which has risen in foreign countries is an effective measure. Through business outsourcing, operators can save cost, get rid of maintenance burdens and focus their efforts on the development of new services.
What needs to be specified first is that operation maintenance outsourcing is unlikely to be a panacea. Practices in the past few years have shown that it also has inherent disadvantages, such as lack of outsourcing service standards. On the other hand, operation maintenance outsourcing indeed has its natural advantages, and will eventually become the development trend in the telecom industry in the future. How to make rational outsourcing decisions and define the boundaries of business outsourcing therefore has become the central task for operators. When making business outsourcing decisions, operators must have a specific guiding thought and theoretical basis. According to the transaction cost theory, if the internal transaction cost of a business is greater than its external transaction cost, then outsourcing should be adopted to operate the business. Otherwise, it should be operated internally. This is the theoretical boundary for business outsourcing.
According to this theory, operators need to follow some principles when making outsourcing decisions. Firstly, business items that involve enterprises' core competitiveness cannot be outsourced. If outsourced, these businesses will make enterprises pay a very high external transaction cost. For example, when core businesses are outsourced, enterprises' core secret will be inevitably exposed. This will cause inestimable losses to enterprises. Secondly, operators need to improve their outsourcing management personnel's decision skills. Thirdly, there is a need to strengthen target management and execution feedback during outsourcing. Outsourcing work needs to be rationally and scientifically assessed. Finally, there is a need to set up a special outsourcing examination committee to offer business guidance and perform implementation supervision on telecom enterprises' all outsourcing management work.
In a word, telecom enterprises should size up the situation and make decisions with discretion. They need to have the ability to discern publicities by outsourcing services providers. Meanwhile, they also need to improve their ability of outsourcing management.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
