The telecommunications industry is one of the fastest changing and developing industries which can bring positive and negative elements to firms who are operating in the industry. Those who are deemed to be at the cutting edge of the technology are always likely to be loved and adores by consumers all over the world but if public perception of a firm takes a negative turn, it can be extremely difficult to try and turn this feeling around. This means that companies may be considered only as good as their latest product or service and fortunes can turn quickly if they do not keep up to date.
One firm who has experienced a drop in their fortune and popularity of late has been Sprint Nextel, one of the major wireless communicators in America. The company is said to have just under 50 million consumers in their home territory alone but in an industry where upgrades and re-purchases are vital, a firm that falters in providing great resale value to a customer will struggle. There has been a notable dip in the income of the company in recent months and periods and there has been a movement to shore up the inefficient areas of the firm. This has seen Sprint Nextel look to outsourcing as a way to improve their current standing as they, like many firms before them, decide that outsourcing their current workload is the solution to their short term problems.
There is no doubt that this tactic can be a fantastic opportunity for firms to reduce their labor costs whilst retaining the quality of the service or product they offer. As long as the right outsourcing company is selected, there is no reason to believe that the firm will suffer any negative impact or connotations for following such a tactic, in fact, it is likely if the outsourcing is done well that they will receive a great benefit from doing so.
Sprint Nextel will become the first of all the American based telecom providers to begin an association with an external agent for managing their network. This stands in contrast with the tactics that the firm has undertaken in the past as they have been notoriously strict about their dealings and who they allow to work alongside them. Perhaps the $5 billion that the firm will receive for the seven year contract has went some way to changing the mindset of the firm and encouraged them to loosen their approach to working with third party agents and firms. Ericsson are the firm who have been awarded the privilege of being the agent Sprint Nextel entrusted with providing this service and no doubt it will provide a great number of bonuses and benefits to them as well as Sprint Nextel.
At the moment, Sprint Nextel appear to be the only firm who are undertaking this plan of action but if their first foray into the outsourcing industry proves to be a success, you can guarantee they will not be the last. Any industry where there is such a tight margin for error will always be on the lookout for new ways to improve their outlook and if this outsourcing move is a success, expect to see many other firms imitate the moves of Sprint Nextel.