Telecommunications Managed Services Model in sub-Saharan Africa – The Pros and Cons : The Case of Nigeria

Sammanfattning: The Telecommunications sector in developing country like Nigeria and other sub-Saharan African countries are increasingly embracing the Managed Services Model, a kind of outsourcing, primarily due the need to cut operational cost, for rapid expansion, to gain market share and to focus on core competence. However, despite the benefits associated with this model and its successful adoption the world over by many telecommunications companies, many sub-Saharan African countries are showing a deviation from this trend. The purpose of this thesis is to explore the motivations in favor or against the adoption of Managed Services Model in sub-Saharan Africa with emphasis on Nigeria. Interview was used as the main tool to gather the required information from some Telecommunication operators and vendors in Nigeria and complemented by the use of a questionnaire survey. The outcome of the analysis of the data gathered indicate that the reason behind the adoption of managed services is cost reduction, access to skilled manpower, better focus on core business, quality improvements, and competitive advantage. The study also establishes that increasing unemployment rate, diminished local competence and expertise, and security concern are among the top reasons for the call against the adoption of Managed Services Model.