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Motorola, Wipro create company aimed at telecom outsourcing.

Motorola has entered into a joint venture with Wipro Ltd. of India, one of the leading companies in outsourcing of IT services. The two firms have created a company called WMNetServe to sell outsourcing services for planning, deployment, security, operations and support of telecommunications

networks. The new company will have its headquarters in Europe.

"The combined strength of Wipro and Motorola gives WMNetServe a significant competitive advantage in managed services," said Srikanth Kannankote, corporate vice president of Motorola. Adds A.L. Rao, CEO of Wipro: "WMNetServe enables customers to benefit from Motorola's leadership position in wireless technology and services, and leverage Wipro's global delivery model and two decades of experience in telecom outsourcing."

The two companies hope to capitalize on the growing trend in outsourcing of telecommunications services. According to Mercer Management Consulting, this market is expected to almost double to $48 billion by 2010, up from $26 billion in 2005. Motorola and Wipro say there is an industry-wide shift taking place away from in-house teams managing networks and upgrading to next generation platforms.

In addition, make sure to read these articles:

Managing an Outsourced Supply Chain
Interview with Dr. Leroy Schwarz, professor at the Krannert Graduate School of Management, Purdue University.