Amdocs was riding a high in the telecommunications industry in the early 2000s, posting revenues of over $400 million. The company was successful in implementing its Ensemble system into the network systems of nearly all RBOCs in the United States, including Sprint and GTE, and made strong headway into the European and South American markets. Afterwards, the emergence of the new wave in the telecommunications industry opened up many new opportunities for Amdocs, as newer, larger operators began to merge traditional and cutting-edge services.
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While Amdocs was one of the most innovative software companies in the industry, its success came at the expense of its core customer base, as well as its broader customer base. However, as the company grew, it expanded into new business segments, including the telecommunications industry. The company’s single largest customer, SBC, still accounted for more than 40% of its sales, but it also had five other large customers that together accounted for nearly 43 percent of its revenue. In 1996, Amdocs reached $200 million in sales and was expanding its operations into new regions.
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Amdocs was founded in 1982 and has grown to more than 25000 employees. Its software solutions include billing and customer relationship management (CRM) systems. The company also provides outsourcing services for various industries. Nextel Communications outsourced its billing and CRM systems to Amdocs in a seven-year contract. In 2002, Amdocs signed a five-year billing services agreement with Verizon Communications. In addition, Amdocs acquired Actix and Celcite for $129 million and Brite.Bill for $260 million.
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