Archived report. This report was archived in 2006 and has not been updated. With an increase in data services both in the business and the residential market, the market for outsourcing and other forms of external assistance will continue to grow. Based on convergence developments around IT and telecoms, and driven by broadband, significant growth is starting to emerge. Cut-throat competition in the corporate market and overcapacity have caused severe damage to the industry. At the same time, some critical business functions will be taken back in-house again as the strategic importance of telecoms is shifting. Improved management tools will be essential, as more internal guidance and directions will be required than has previously been the case. Cost savings are still the major driver, but improvements in quality are increasingly becoming a key reason to outsource.
