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To: Joana Tides who wrote (5029)	10/5/1999 1:47:00 PM
From: elmatador	Respond to of 7442

FUNCTIONAL SERVICES: The final source of new value in the telecom industry-and perhaps its next big growth opportunity-is functional, or professional, services. Two kinds of companies offer them: those, like EDS, that regard traditional telecom transport as important; and others, like Convergys (formerly the CBIS and Matrixx Marketing divisions of Cincinnati Bell), that supply telecom providers with services such as billing and call-center management. This second category?s emergence is exciting in two ways. First, it creates an opportunity for companies that can make a business out of a ?sliver? of the value chain. Second, it permits other companies in the telecom industry to unlock shareholder value by outsourcing functions representing the weaker links in their own value chains. Source: McKinsey Quarterly. Those boutiques such as Telelogic, are the new source of growth.