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Amdocs Survey: Service Providers Are Using More IT Services Vendors than Ever, Despite Ambition to Simplify IT Environments

Survey highlights growing need for prime service integrators to take ownership over multi-vendor environments in order to reduce business risk and operational complexity

ST. LOUIS, Feb. 27, 2014 /PRNewswire/ -- Amdocs, the leading provider of customer experience systems and services, today released the results of a global survey into service provider IT services sourcing trends. The survey found that despite service provider ambition to simplify and streamline their IT operational environments, three out of four service providers have increased the number of their IT services vendors over the past five years.  

Key findings of the survey reveal that service providers:

  • Are using more services vendors than before: 74 percent of respondents said that over the past five years they had increased the number of services vendors they used, with 26 percent having doubled their number of vendor agreements during this period
  • Are using more services to re-align their operations in support of technological developments: emerging IT domains (e.g. cloud computing and big data analytics), new organizational buying centers (e.g. centers within the CMO and CTO organizations), and growing skills gaps have been identified by 77, 74 and 72 percent of the respondents respectively as key factors driving the rise in services engagements
  • Agree that core IT domains saw the largest increase in services vendor engagements: IT infrastructure, BSS and OSS (business and operational support systems) were identified by 77, 64 and 54 percent of respondents respectively as the three IT domains seeing the highest increase in the number of external services vendors
  • Are looking for sourcing engagement models that can help them simplify IT operational structures: Minimizing business risk (79 percent) and deal complexity (72 percent) were defined as the top criteria for selecting sourcing engagement models by survey respondents

"What the survey indicates, and what is further supported from our discussions with customers, is that there is a growing need for prime service integrators that service providers can rely on to take full accountability over the entire, multi-vendor structure in order to reduce risk and allow service providers to focus on their business, rather than deal with the increasing complexities of the IT environment," said Rebecca Prudhomme, vice president of product and solutions marketing at Amdocs.  

"Service providers are looking for a trusted advisor who can help them identify the technology and IT services required to best deliver on their business objectives, as well as introduce added value and efficiencies through service innovation," Prudhomme added. "With our innovative service methodologies and tools and more than 30 years' experience serving the communications industry, including the world's largest service providers, we believe Amdocs is best positioned to help our customers achieve their goals and optimize business outcome."

Amdocs offers a comprehensive range of IT and business services solutions to help service providers drive growth, improve efficiencies and offer a better customer experience. Amdocs' services cover the full project lifecycle, from business consulting, systems integration and testing, to IT managed services, including daily operations.

Conducted for Amdocs by Coleman Parkes, the research surveyed 50 CIOs and 50 senior vice presidents responsible for IT operations or IT services procurement at large service providers across 23 countries in Europe, Asia-Pacific and the Americas.

Supporting Resources

About Amdocs
For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control product portfolio with value-driven professional services and managed services operations. With revenue of $3.3 billion in fiscal 2013, Amdocs and its 21,000 employees serve customers in more than 70 countries.  

Amdocs: Embrace Challenge, Experience Success.

For more information, visit Amdocs at www.amdocs.com

Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2013 filed on December 09, 2013 and our Form 6-K furnished for the first quarter of fiscal 2014 on February 11, 2014.

SOURCE Amdocs

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