Zain Nigeria Enters Five-year Outsourcing Pact With Ericsson

9th June 2009

In the first agreement of its kind on the African continent, Zain Nigeria, has teamed-up with Ericsson, the world's leading provider of technology and services to telecom operators.

Ericsson will be responsible for managing most of the network and field operations for Zain's wireless networks and operational support systems, serving almost 4,000 sites across Nigeria.

Also, as part of the agreement, about 450 employees will be transferred from Zain Nigeria to Ericsson under their existing terms and conditions of service, where they will undergo further development in the latest wireless technologies.

A statement from Zain's head office in Lagos explained that with the accord, the company and Ericsson "will be better positioned to support the evolution and growth of the local telecommunications market, with each side focusing on particular areas of specialization.

"This is a unique deal for Zain and a major initiative within its ACE strategy that will propel Zain into the ranks of the world's top-ten mobile telecommunications companies by the end of the year 2011.

"An integral part of this strategy is for Zain to execute its 'Drive11' programme to increase its focus on managing its customer relationships, while improving its control on non-customer facing functions, some of which will be outsourced to strategic partners.

"The deal also gives Ericsson its first major managed services opportunity in Africa, in particular Nigeria, reflecting the increased attention of both companies on markets where high customer growth is expected within the next five years," the statement added. Zain currently serves over 15 million active customers in Nigeria.

Chief Executive Officer of Zain Africa, Mr Chris Gabriel expressed confidence that the outsourcing agreement will have many benefits for the company and its customers.

"Choosing Ericsson, which has more than 15 years' experience in managing outsourced networks to help operate our network in Nigeria fits perfectly with our 'Drive11' business objectives of improving efficiency and the quality of our networks and operations.

"As a result, we will be in a far stronger position to dedicate resources and assets to our core business operations, continuing to improve customer support, developing and launching new products, services and mobile applications, and delivering on our Zain brand promise of 'a wonderful world'," he said.

President, Ericsson sub-Saharan Africa, Mr Lars Linden was equally upbeat about the agreement, believing that Ericsson's first managed services contract in Africa will deliver significant financial and operational efficiencies for Zain over the five-year term.

"Managing outsourced networks and services are one of the fastest-growing areas in telecoms across the globe, and Nigeria is demonstrating strong growth and increased levels of investment and competition.

"The synergies between the two companies will ensure best-in-class network stability and market support," Ericsson's chief added.

Linden was also excited about the prospect of the Zain employees that will be transferred to Ericsson under the agreement.

According to him, "with their knowledge and expertise, Zain employees will be welcome additions to an area that is a core business for Ericsson," he said. "This agreement will allow both companies to strengthen their competitiveness, which will ultimately increase market growth for mobile services."

Zain's agreement with Ericsson may improve network efficiency, make the most of Zain's network investment and reduce operating costs for approximately 4,000 sites across Nigeria.

It could further strengthen Zain's competitiveness by achieving savings in network operations, a shorter time-to-market for new services and technologies, and improve the overall quality of service.

Source: Guardian

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