Telecom Outsourcing Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Outsourcing Type (Call Center Outsourcing, Finance & Accounting Outsourcing, Billing Operations Outsourcing, Infrastructure Maintenance Outsourcing), By Service (Managed Service, Professional Service), By Organization Size (Small & Medium Enterprises, Large Enterprises), By Region & Competition, 2021-2031F

Market Overview

The Global Telecom Outsourcing Market will grow from USD 15.96 Billion in 2025 to USD 34.61 Billion by 2031 at a 13.77% CAGR. Global Telecom Outsourcing involves the strategic contracting of business functions, including network infrastructure management, IT operations, and customer support, to external service providers. This practice allows operators to optimize operational costs and focus on core competencies such as service innovation and subscriber acquisition. A primary driver of market growth is the increasing complexity of network technologies, particularly 5G, which necessitates specialized external expertise to maintain efficient operations. According to the GSMA, in 2025, the mobile ecosystem generated approximately $6.5 trillion in economic value added, illustrating the vast operational scale that compels providers to leverage outsourcing for efficiency and sustainability.

Despite these benefits, a significant challenge impeding market expansion is the risk associated with data security and regulatory compliance. Delegating critical functions to third parties exposes operators to potential data breaches and a loss of control over sensitive subscriber information. Stringent international privacy laws further complicate these partnerships, making operators hesitant to transfer mission-critical responsibilities to external vendors. This reliance on third-party security frameworks creates liability concerns that can act as a substantial barrier to the broader adoption of outsourcing models within the sector.

Key Market Drivers

The surging complexity of 5G network deployment and infrastructure management acts as a primary catalyst for the telecom outsourcing sector. As operators transition to virtualized 5G architectures, technical demands often exceed internal capabilities, necessitating partnerships with specialized vendors for deployment and maintenance. This shift is driven by massive investment requirements and the need to accelerate time-to-market for next-generation services. According to GSMA, February 2024, in the 'The Mobile Economy 2024' report, mobile operators are projected to invest $1.5 trillion in their networks between 2023 and 2030, with over 90% of this expenditure directed toward 5G. This substantial capital commitment compels providers to outsource network operations to ensure optimal performance without bearing the full burden of technical management.

Simultaneously, the rising imperative for operational cost optimization drives operators to restructure business models through external collaborations. Facing saturated markets, telecom companies delegate functions like IT maintenance to reduce expenses and free up capital. According to BT Group, May 2024, in the 'Annual Report 2024', the company established a target to achieve £3 billion in gross annualized cost savings by the end of the 2029 financial year, highlighting the pressure to streamline balance sheets. This efficiency drive frequently manifests in large-scale transformation deals. According to Microsoft, in 2024, the company entered a partnership with Vodafone valued at $1.5 billion to overhaul cloud and AI infrastructure, demonstrating how outsourcing facilitates both cost management and modernization.

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Key Market Challenges

The escalating risks associated with data security and regulatory compliance constitute a formidable barrier to the expansion of the Global Telecom Outsourcing Market. As telecommunications operators manage increasingly vast repositories of sensitive subscriber data, the decision to outsource critical infrastructure management or customer support functions introduces significant vulnerability. The transfer of these responsibilities to external vendors necessitates sharing proprietary network access and consumer information, which amplifies the potential for cyberattacks and data breaches. Consequently, operators face heightened liability under stringent international privacy regulations, where third-party failures can result in severe financial penalties and irreparable reputational damage.

This precarious landscape compels many telecom providers to retain sensitive operations in-house rather than capitalizing on the operational efficiency of outsourcing. The prioritization of internal control over cost optimization directly decelerates market adoption rates, as operators view external partnerships as potential security weak points. This strategic hesitation is substantiated by recent industry sentiment regarding threat levels. According to the Global Leaders Forum, in 2024, 64% of carriers identified fraud prevention as a top priority, a figure that underscores the intense focus on risk mitigation. When operators prioritize absolute oversight to safeguard against fraud and compliance violations, the volume of contracts awarded to external service providers inevitably contracts, hampering overall market growth.

Key Market Trends

The integration of AI and automation in network operations is fundamentally reshaping the outsourcing landscape as operators seek to enhance system resilience and efficiency. Rather than building proprietary tools, telecom providers are increasingly partnering with specialized vendors to deploy generative AI solutions capable of predictive maintenance and real-time fault resolution. This reliance on external expertise allows operators to manage complex network environments dynamically while mitigating the need for extensive in-house technical teams. According to NVIDIA, February 2024, in the 'State of AI in Telecommunications Annual Report 2024', 48% of telecom respondents reported investing in generative AI specifically for network operations and management, highlighting the sector's dependence on advanced third-party technologies to streamline critical infrastructure tasks.

Concurrently, the increasing outsourcing of edge computing management is gaining traction as decentralized data processing becomes essential for industrial applications. As enterprises adopt private wireless networks to support low-latency use cases, the operational burden of managing distributed edge nodes grows, compelling operators to delegate these responsibilities to third-party experts. This trend enables telecom companies to deliver robust edge capabilities without shouldering the full operational load of maintaining dispersed hardware and software stacks. According to Nokia, June 2024, in the 'Industrial Digitalization Report 2024', 39% of enterprises that deployed private wireless networks have implemented on-premise edge technology, creating a substantial demand for managed services to oversee this expanding decentralized infrastructure.

Segmental Insights

The Small and Medium Enterprises segment is recognized as the fastest-growing category within the global telecom outsourcing market. This expansion is primarily driven by the increasing need for cost optimization and the limitation of internal resources required to manage complex communication infrastructures. By partnering with external service providers, these organizations can access comprehensive network management and support functions without incurring significant capital expenditures. Furthermore, the rapid adoption of cloud-based solutions compels smaller businesses to delegate technical operations to specialized vendors, allowing them to focus on their core commercial activities.

Regional Insights

North America commands the leading position in the Global Telecom Outsourcing Market, driven by established infrastructure and the rapid adoption of 5G and cloud technologies. Telecom operators in the region prioritize outsourcing to reduce high operational costs and manage increasing network complexity. By delegating non-core functions such as IT maintenance and customer support to specialized vendors, companies can focus capital on strategic growth and digital innovation. This structural reliance on external expertise to ensure service agility and efficiency underpins North America's continued market dominance.

Recent Developments

• In September 2025, IBM introduced a new network intelligence solution powered by artificial intelligence to manage the growing complexity of modern telecommunications infrastructure. This platform combined time-series foundation models with reasoning agents to automate root cause analysis and streamline troubleshooting workflows for network operators. The technology was designed to ingest high volumes of telemetry and alarm data, providing early warning signals that surpass traditional rule-based tools. By facilitating autonomous operations with human oversight, the solution aimed to reduce the manual workload on network teams and replace fragmented operational processes with a unified, intelligent assurance layer.
• In June 2025, Ericsson was awarded a significant multi-year managed services contract by Bharti Airtel to operate its national network operations center. Under this agreement, the company committed to deploying intent-based operations to manage a wide array of services, including 4G, 5G non-standalone, and 5G standalone networks. The partnership encompassed the management of fixed wireless access and private networks, utilizing advanced automation to enhance service reliability. This collaboration aimed to scale network slicing capabilities across the region, enabling the telecom operator to unlock new revenue streams while optimizing operational efficiency and customer experiences.
• In November 2024, Tech Mahindra entered a strategic collaboration with Amazon Web Services to develop an Autonomous Networks Operations Platform tailored for telecommunications service providers. This solution integrates generative artificial intelligence and machine learning to enable hyper-automation for network operations centers. The platform was designed to improve operational productivity significantly and reduce the time required to repair network incidents. By utilizing advanced cloud capabilities, the initiative aimed to modernize network infrastructure, simplify complex business processes, and accelerate the monetization of 5G and open radio access network technologies for enterprise customers globally.
• In October 2024, Accenture signed a five-year agreement with the telecommunications provider du to drive a comprehensive digital transformation of its information technology landscape. The partnership focused on establishing a new operating model that leverages generative artificial intelligence and advanced analytics to modernize applications. The initiative aimed to improve agility and market responsiveness by shifting operations to the cloud and refining business processes. By fostering a culture of innovation, the collaboration sought to enhance customer-centric solutions and operational efficiency, supporting the telecom provider's long-term growth and technological advancement goals.

Key Market Players

• Telecom Argentina S.A.
• Cognizant Technology Solutions Corporation
• Accenture plc
• HCL Technologies Limited
• Infosys Limited
• Wipro Limited
• Alorica Inc.
• Concentrix Corporation
• TTEC Holdings, Inc.
• Fujitsu Limited

Report Scope:

In this report, the Global Telecom Outsourcing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Telecom Outsourcing Market, By Outsourcing Type:

• Call Center Outsourcing
• Finance & Accounting Outsourcing
• Billing Operations Outsourcing
• Infrastructure Maintenance Outsourcing

• Telecom Outsourcing Market, By Service:

• Managed Service
• Professional Service

• Telecom Outsourcing Market, By Organization Size:

• Small & Medium Enterprises
• Large Enterprises

• Telecom Outsourcing Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE