SA's second largest operator by customer number, MTN, may outsource a number of its divisions in order to focus on its core business segments of data and voice, Business Day reports.
Citing MTN CEO Ahmad Farroukh, the daily broadsheet says the company will continue to rationalise the business to improve efficiency.
"The company is in talks to outsource management of MTN-branded retail stores. The appointed partner's responsibilities could include dealing directly with device-makers," notes Business Day.
"Outsourcing some divisions could free up resources and save money. Mr Farroukh could not reveal details but said talks could be finalised by July.
"MTN is also looking at ways to 'optimise' its call centre operations but no decision had been taken on the approach the group will take to its call centres."
The newspaper further cites Farroukh as saying MTN wants to go back to its core business. "We excel in network access, voice and data. We are not specialists in things like warehousing. There are companies that specialise in that."
Last week, at the company's year-end results, MTN announced it had allocated R10 billion in capital expenditure to maintain and expand its network this year - almost double the amount it spent in SA last year (R5.7 billion).
MTN had not responded to request for comment by the time of publication.
Outsourcing boon
Telkom said recently it would outsource its call centre operations and staff, as well as certain legacy IT billing systems, an internal printing division, and the network and operations and retail supply chain sections.
The company says the move forms part of its ongoing turnaround plan. Telkom communications head, Jacqui O'Sullivan, says outsourcing is "a critical step in Telkom's focus on the customer".
She says clients are the core of Telkom's business, but running call centres is not. "Customers will benefit from a focused and consistent service that a professional call centre organisation can offer. We are confident this is the correct action to take."
SA's operators have been looking to alternative revenue streams and implementing cost-cutting measures as their profits come under pressure in a changing landscape that is becoming dominated by data and crowded by "over-the-top" players.
Growth analysis and consulting firm Frost & Sullivan says outsourcing is widely recognised as an effective way to curb costs, with SA being the leading outsourcing market across areas like customer support, financial services legal administration and other back-office services.
"This is already being experienced in the ICT industry, through the use of hosting, cloud and managed services. IT and customer support services are fast becoming the most outsourced services by enterprises."
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