India's OSS BSS Solutions Market Growing Rapidly: Report

The phenomenal growth in the Indian telecommunication industry has spurred demand for Operation Support System and Business Support System solutions, says market research firm Frost & Sullivan.

 

“The OSS BSS market registered 10 to 12 percent year-on-year growth for past five years, which is significantly higher than global CAGR of 6 to 7 percent,” says the researcher.

 

In India, which is believed to be predominantly pre-paid telecom market, average revenue per user is declining, forcing the telecom operators to look for alternate sources of revenue. In addition, operators have to meet increasing demand in IT requirement to cope up with rapidly increasing subscriber base. These factors, according to Frost and Sullivan, have fuelled growth in OSS BSS solutions market.

 

Emerging services like service delivery platform, which help in faster rollout of services, are in high demand, says the research firm.

 

The researcher predicts Indian OSS BSS market may grow at 17 percent CAGR over the next seven years reaching USD 1508.0 million by 2015 from current size of USD 492.7 million.

 

According to the researcher, strategic outsourcing is the most dominating model currently followed by companies involved in business transformation and application maintenance services. While CRM is the most sought after functionality, billing contributes to 30 percent of customer management. Other significant functional areas are Network Management and Emerging Services including Service Delivery Platform (SDP).

 

“Requirement of OSS BSS solutions is expected to continue in the future with further refinements and innovation in engagement models. More IT vendors will engage into revenue sharing models increasing competition in this market. They will do well to keep an eye on requirements of TSP and customize their offerings as per those requirements,” says Santosh Kumar Sinha, an industry analyst with Frost & Sullivan (News - Alert).

 

Over the years, the researcher predicts, new players will ink outsourcing deals worth $2 billion and change the market share of IT service providers significantly. This trend, the firm says, will continue with entrance of new TSPs, rollout of 3G and Mobile Number Portability, which will further intensify competition.