Several days ago we received a press release stating that Huawei Tech Investment was appointed as a partner of PT XL Axiata to manage its mobile network for the next seven years. The designation is based on Huawei’s experience in managing the network and the ability to provide assurance that the XL network services will remain reliable. Mr. Hasnul Suhaimi (President Director of XL) asserted that this step was taken by XL in order to be more focus on core services, namely the network services.

Huawei will manage operation of XL’s 2G/3G mobile network services including Network Operations Center (NOC), Field of Operations (FOP), Network Performance Management (NPM) and Spare Parts Management Service that is owned by XL. One of the highlights of cooperation Managed Network Services is the transfer of 1200 XL employees (which I assume most of them are the engineers) becoming an Huawei employees. XL ensures that the rights of employees are still aligned with the regulations, including the same remuneration scheme.

Employees who transferred to Huawei include permanent employees and outsourced employees.
The decision to outsource its own employees in the form of assets and to restructure labour division are most likely to minimize the cost incurred for network management. Will this become a trend in the future? We have to wait. Clearly we hope this decision will not be a bad precedent for existing contracts and the network management transition went smoothly to ensure quality service to customers.

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