In a bid to cut operating costs, two mobile network carriers, Vodafone UK and Orange said Wednesday (March 18) that they will be outsourcing in separate deals. Vodafone UK has announced that it will be outsourcing to Ericsson, while Orange will be turning over its network operation to Nokia Siemens.

Mobile providers have started to move their workforces to better customer service and quality, and thus need to outsource some of their operations to cut down on equipment costs. Senior analyst at research firm Ovum, Emeka Obiodu said:

Operators have been reluctant to do this until now because they have always considered network operation to be part of their core business. They have started to become convinced that it’s more important to provide good services.

Vodafone has signed a seven-year agreement with Ericsson; the said agreement covers maintenance and operational support for Vodafone’s Britain radio access networks. Also included in the agreement is a transfer of around 350 staff from Vodafone to the mobile network maker.

Orange, on the other hand, has handed over its telecom networks in Britain and Spain to Nokia Siemens in an agreement that spans five years. Like the Vodafone-Ericsson agreement, Orange will also be transferring 230 of its staff.

Both deals are expected to net all parties involved a lot of benefits. Network operators will be able to cut costs, while the mobile equipment makers will be able to get some breathing room from stiff competition from China. Changes might be just around the bend.

Obidou adds, “If Vodafone does it in the UK there’s every chance they will look at it as a global phenomenon.”