Durreesamin Journal (ISSN: 2204-9827)

November Vol 3 Issue 3, Year 2017

NINE DEADLY BARRIERS OF MANAGED SERVICE IN

AFRICA

Adedoyin Adeola
Atlantic International University School of Science and Engineering.
Email: adedoyinadeola@yahoo.com
Abstract:

Managed Service success in Africa is key to development of Africa Economy because ICT plays a very

leading role in Africa Economy success story.

This model is adopted with the aim of getting Operational cost efficiency, rapid expansion, first-mover-

advantage where operators focus on their core competency which is sales and marketing. It has been

observed that there is a tangential deviation from this expected benefits due to certain barriers.

These barriers were explored, analyzed and mitigation plans were proposed to circumvent these

barriers for managed Service in Africa.

Keywords: Managed Services, Operators, Outsourcing, Vendors, Telecommunication.

LITERATURE REVIEW

Telecommunication has been the key economic growth enablers in Africa and the future of growth in

Africa Economy relies on telecommunication.

The cost of doing this business in Africa is huge, most Africa’s countries relies on FDI (Foreign Direct

Investment) to play in this domain. The environment, regulatory, economic melt-down remain greatest

challenges for this industry and these challenges caused a reduction in the profit margin. The steady

declination in ARPU (Average Revenue Per User) despite tremendous growth in the industry shows the

uniqueness of these challenges.

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November Vol 3 Issue 3, Year 2017

Operators are seeking innovative and cost-effective mode of doing this business in order to reverse the

negative profit margin trend hence this logic influences organization’s make or buy decision (Ivanka et

al., 2008, p.10).

We have seen that the benefit envisaged eluded operators and this resulted into frustration from both

parties. The model adoption and execution in Africa have many flaws which were initially highlighted

from “Jerome Barthelemy and Denis Adsit” book titled “Seven Deadly Sins of Outsourcing” which did not

focus on Africa situation.

My review and paper highlighted those major barriers to Managed Service especially in

Telecommunication industry and Africa and proffers recommendation to solve or circumvent those

barriers.

Introduction:

Managed Service concept is a familiar concept in the world of telecommunication industry today and

the increase in competition and regulatory challenges with financial limitation forced most operators to

go lean with their resource structure , Operation and push for out-sourcing model to the expert while

they focus on their core Business which is Sales and marketing (Commercial).

According to Domberger (1998), the concept involves the transfer of activities or deliverables that used

to be done internally to external provider whose relationship is bounded by a contract.

The concept’s strategy is that Operator will benefit from reduction in operational expenditure while

customer quality of experience is not compromised.

 Durreesamin Journal (ISSN: 2204-9827)
November Vol 3 Issue 3, Year 2017

Quinn and Hilmer (1994) reasoned that with increase in the fierce competition and volume of the

managed services activities, it is extremely important for scope changes from traditional to strategic

out-sourcing.

What is strategic out-sourcing?

Mazzawi (2002) said that it is concerned with creating value to align with the business processes that are

changed to be in-line with strategic goals.

The operators are demanding for improved service delivery to customer through the use of combined

local and foreign expertise, technological tools and robust processes.

The main objectives of Managed Service are organizational re-structure and cost.

Most of the Operators and Companies are looking forward to cost efficiency without compromising the

Quality of delivery from MS partners but this is yet to be achieved due to certain barriers.
 Durreesamin Journal (ISSN: 2204-9827)
November Vol 3 Issue 3, Year 2017

9 DEADLY BARRIERS OF MANAGED SERVICE IN

AFRICA
KEY INSIGHTS
African Flavor and 9 Deadly Barriers of MS People , Process & Tools
Customization Hiccup
In Africa

Right Out-sourcing Vendor Evaluation Accountability &

Knowledge Database Contents Responsibility Mix-up
Proficiency

Contract
Understanding Culture Myopia Robust Exist Strategy

Copy Right: Dr Adedoyin Adeola

These barriers are what I called Nine Deadly Barriers of Managed Service in Africa.

They include:

1. African Flavor and Customization deficiencies: Processes, Model and Strategy from overseas

which are tested and proven do not guarantee success story in Africa. Most MS partners get it

wrong here because of the “one size fits all” strategy. Managed Service is about people

whenever the complexity of this entity is compromised or Mis-calculated, there result will be a

disaster.

2. People, Tools and PROCESS Hiccups: These are the three tripods on which Managed Service

delivery stand-on. Irrespective of how solid and robust your processes are and solid

technological tools deployed if people aspect is not prioritized, there will be a major issue

because we need people to use the tools and run the processes.

3. Knowledge database Proficiency: This is a cultural shift that is required to be enforced on the

delivery machinery. The habit of good record keeping and proper documentation helps in
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November Vol 3 Issue 3, Year 2017

smooth running of the delivery machinery and if this part is missing, there will be wrong

decision-making move which will cost both demand and delivery organization.

4. Culture Myopia: This is strongly linked to the local customization, the people’s culture,

mentality and Psyche is very important to deliver successfully. This aspect is the power-house

for the effectiveness of people management with respect to organizational changes and fear

management.

5. Right Out-sourcing Contents: This barrier has more impact on the network Operators because

the content to outsource is a function of your internal capability, strength, competency, strategy

and organizational structure. You cannot do copy and paste of outsourcing contents base on

other operator’s strategy, you have to be unique in your strategy and deliverables and this must

suit your organizational capability and architectural outfit.

6. Contract Understanding: This barrier affects mostly the Operators where the implications of all

the addendum and letters of the Managed Service contract is not governed adequately. This

often leads to misunderstanding and misinterpretation of the contract and this leads to trust

issue where all relationship is broken down between the parties.

7. Vendor Evaluation: This is often cause a lot of issues within the organization because of

different vendor preferences.

8. Accountability and Responsibility Mix-up: Outsourcing of activities is not a license to abdicate

your responsibility. Here is where the mentality shift affects the deliverables. Operators’ still has

the ownership responsibility to ensure that all what stated in the contract from delivery point of

view is done right.

9. Robust Exit Strategy: In all contract, there must be an exit strategy for both party and in a

situation where there is none for either of the party then the relationship will be imbalance and
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November Vol 3 Issue 3, Year 2017

this will lead to frustration and relationship breakdown and this will have big impact in the

performance.

MITIGATION PLANS

1. Lack of Africa Flavor and customization. (Environment, infrastructure, security and people

psyche etc…) Standardization and Automation.: The strategy in dealing with Environment,

People, infrastructure, processes and security to mention just a few needs to be tailored around

the local flavor and knowledge. The approach of “one size fits all” needs to be jettison because

within different location in a given area, the dynamics of delivery differs and this has to be

match with the right strategy to support good performance. All European vendors need to move

in this direction before success can be guaranteed.

2. Right outsourcing content: Operators require solid understanding of what is required to be

outsourced because all operators are not the same from all perspective. Some of the models

that can help or give guidance includes the following:

• Core Competence Theory

• Resource-based Theory

• Transaction Cost Theory

• Network Theory

• Contractual Theory

• Contingency Theory
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November Vol 3 Issue 3, Year 2017

3. Vendor evaluation. Proper and transparent RFP are required to be done with MS expert input

into the expectation and selection criteria. Other thing to consider mostly important Is the

vendor local knowledge and experience similar to your geographical Region. This is what I added

on top of decision process developed by Justin et all (2006).

Figure 1: Outsourcing Decision Process Justin et all, (2006).

According to Justin et all (2006), the decision process model to follow when there is need for

vendor selection process is described below:

✓ Define Strategic Objectives: The strategic objectives and target variables need to be very clear

because these will be used as a measurement for successful evaluation of the strategic decision

and this is most critical for the success of an outsourcing drive.

✓ Define a suitable Outsourcing Model: The clearer the definition of objectives and variables, the

better will be the business gains and set goals.

✓ Validate the Outsourcing Model: This step may include some stakeholders, which are involved

in the outsourcing projects within the organization. This step also strengthens the benefits and

risks of the outsourcing decision and may consider benchmarking data for similar businesses.
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November Vol 3 Issue 3, Year 2017

✓ Define Requirements and Partner Selection Criteria: This step involves a clear definition of the

requirements and specifications of parameters for the vendor selection criteria.

✓ Select Vendor: The step involves selecting the right vendor based on Step (iv), then followed by

the initiation of negotiations procedure.

4. People, Process and Tools Hiccup: The tripods of MANAGED Services are People, Process and

Tools. People aspect is the most critical and there is no algorithm or technology to manage, it

has to do with clear cognitive and emotional intelligence with a transparent and fairness in

dealing with people. Empowerment will help people management and this will spur them to

higher performance.

5. Accountability, Responsibility Mis-up and Contract understanding: The knowledge of your

contract is the first principle towards successful delivery of managed service and this has to be

the cascaded to all the team members. Whenever there is gap in this, performance will be

impacted. You need to get a contract fulfillment officer that will act as an expert for the

managed service contract.

6. Culture Myopia: The impact of culture on success managed service deal is very high. This activity

is people oriented. Any impact on the people’s culture will definitely has an impact on the

people’s delivery. The recommendation here is to ensure that the local insight is factored into

any adopted strategy for managed service. It is the people that will help you on the best strategy

on dealing with government and associated challenges from the Environment.

7. Knowledge database recklessness: Every strategy requires an informed input which is devoid of

errors. Good and accurate Record keeping play an important role here and this has to do with

the mental shift of all the team showing the important of good Record keeping.
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November Vol 3 Issue 3, Year 2017

8. Robust exit strategy: This must be factored into the MS Contract from the beginning and all

associated cost has to be discussed and agreed to with no surprises. It is important that both

Vendor and Operator have the exit strategy in case there is need to roll-back or call-back the

deal.

Conclusion:

Managed Service is the right strategy for telecommunication and all the associated benefits can be

achieved if proper focus is given to those highlighted barriers.

It is a joint collaboration between Operators and Vendors to mitigate these barriers in order to maximize

Managed Service benefits.

Once these barriers are crushed, all other strategy will have place to stay with the desired result.

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