Telecommunication industry is one part of the larger information and communications technology. It is made up of telecommunication companies and internet service providers. These companies make communication possible on a global scale, says Investopedia. They created the infrastructure that allows data in words, audio or video to be sent anywhere in the world. The advancements, evolution, and development in mobile communications and information industry are also parts of telecommunication industry.
The telecom sector has evolved from the first mechanical device of the telegraph. Then technology allows for voice calls over large distances, and for a long time this industry solely meant traditional telephone calls. Then it moved towards more forms of networking like text messages and now internet – emails, voice calls, and video calls. Even today, traditional telephone calls generate most revenue for the industry however the focus of consumers is shifting rapidly towards internet calls and videos, which means that the greatest revenue potential is coming from internet. There are also associated industries like companies selling equipment such as routers, and industries providing services for telecom and equipment, mobile phone manufacturers, internet devices producers and distributors that are also part of telecom industry. The primary evolution for the telecommunications industry has come from the wireless sector. Further expansion is also likely from high-speed fiber-based networks.
Telecommunication industry employs outsourcing in several ways primarily based on the recipient companies, their sizes and their operational strategies. For smaller businesses, outsourcing in this segment means reduction of costs, increased competitiveness, and ability to operate at parity with larger businesses because of improved access to more established research and development teams. Outsourcing enables them to operate at lower labor and operational costs freeing more resources for more revenue generating activities, thereby improving potential for profit and growth. For larger telcos, outsourcing is more of a need than a mere choice for its benefits. Larger telecommunication companies make for important contributors to national exchequer as well as source for foreign information and technology evolutions and advancements. For such businesses, outsourcing is a means to expand their businesses, both geographically and operationally. This is one of the most effective methods of penetrating foreign markets while keeping costs low and performance high.
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