Ericsson, the world’s largest telecom network ge
ar maker, may rejig key businesses and people resources in India to cut costs as deals dry up and it faces fierce competition from Chinese rivals such as Huawei amid continuing regulatory uncertainty.
The Swedish company’s sales declined 34 per cent in India last year, the biggest in percentage terms across its global ecosystem comprising 11 regions. It fell to SEK 6.5 billion (Rs 5,553 crore) in 2012 from SEK 9.76 billion (Rs 8,340 crore)in the earlier year.
The decline is steeper than the reduced sales of its operations in Northern Europe & Central Asia (25 per cent), Western & Central Europe (8 per cent), North East Asia (5 per cent) and the Mediterranean region (2 per cent).
Company insiders claim Ericsson continues to dominate the managed services and operations and business support systems (OSS/BSS) domains in India, but its weak performance in the country is reflected in lower sales reported by its networks, global services and support-solutions verticals, which fell 42 per cent, 22 per cent and 14 per cent, respectively, according to its 2012 annual report reviewed by ET. “India had a weak year due to low activity levels with operator investments only in certain areas,” the company said in its annual report.
Industry executives familiar with matters, however, claimed Ericsson India may review its people resources in the global services vertical, which is reckoned to be a people-intensive, low-margins business.
According to the 2012 annual report, Ericsson increased its India employee count last year to 14,303 from 11,535 in 2011.
Ericsson, the world’s largest telecom network gear maker, may rejig key businesses and people resources in India to cut costs as deals dry up and it faces fierce competition from Chinese rivals such as Huawei amid continuing regulatory uncertainty.
The Swedish company’s sales declined 34 per cent in India last year, the biggest in percentage terms across its global ecosystem comprising 11 regions. It fell to SEK 6.5 billion (Rs 5,553 crore) in 2012 from SEK 9.76 billion (Rs 8,340 crore)in the earlier year.
The decline is steeper than the reduced sales of its operations in Northern Europe & Central Asia (25 per cent), Western & Central Europe (8 per cent), North East Asia (5 per cent) and the Mediterranean region (2 per cent).
Company insiders claim Ericsson continues to dominate the managed services and operations and business support systems (OSS/BSS) domains in India, but its weak performance in the country is reflected in lower sales reported by its networks, global services and support-solutions verticals, which fell 42 per cent, 22 per cent and 14 per cent, respectively, according to its 2012 annual report reviewed by ET. “India had a weak year due to low activity levels with operator investments only in certain areas,” the company said in its annual report.
Industry executives familiar with matters, however, claimed Ericsson India may review its people resources in the global services vertical, which is reckoned to be a people-intensive, low-margins business.
According to the 2012 annual report, Ericsson increased its India employee count last year to 14,303 from 11,535 in 2011.
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