Evaluating the performance of network optimization outsourcing

In today´s globalized economy, telecom operators are facing ever-increasing competition and challenges, they need to focus on core business and reduce operation cost, and network outsourcing represents a developing trend of telecom industry. How to manage and measure outsourcing performance become crucial problem carriers currently confronting. In this paper we offer a methodology to assess the comparative efficiency of four network optimization firms by utilizing the data envelopment analysis (DEA) technique. Empirical results show that the approach is feasible and the scale of outsourcing firms does play an important role in influencing their operating efficiency. They can increase their efficiency by adjusting their resources to achieve the optimal size. In addition, the outsourcing firms which appear in reference set may consider as primary benchmark for other inefficient ones. We conclude by discussing implications for theory, practice and future research direction.