As part of the contract, 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.
Through this accord, Zain and Ericsson will be better positioned to support the evolution and growth of the local telecommunications market with each side focusing on their particular areas of specialisation.
An integral part of this strategy is for Zain to execute its ‘Drive11' program 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.
Chris Gabriel, CEO of Zain Africa, confident that the outsourcing agreement will have many benefits for the company and its customers, commented, “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',” Gabriel added.
Lars Lindén, President, Ericsson sub-Saharan Africa, 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,” he said. “The synergies between the two companies will ensure best-in-class network stability and market support.”
Lindén was also excited about the prospect of the Zain employees that will be transferred to Ericsson under the agreement. “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 will improve network efficiency, make the most of Zain's network investment and reduce operating costs for approximately 4,000 sites across Nigeria. It will 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.
