An efficient IT network infrastructure is crucial for any business to grow and expand. Network executives are always under pressure to increase the network capacity to meet the growing demand for data services even in a situation when the companies are tightening IT budget in light of prevailing economic stress. One method of meeting the challenge is by outsourcing networking to IT service providers.
The expansion of business to new geographical boundaries and emergence of new technologies has made managing network capacities a nightmare for the companies. Increasing complexity of networks and continuing efforts of the companies to reduce cost, increase quality of services and streamlining processes lead many firms to outsource their networking tasks. But, still network outsourcing lags behind other IT related outsourcing segments.
Why network outsourcing is lagging behind?
According to a research carried out by Accenture, the resistance towards network outsourcing comes in three forms. Firstly, it is the belief of the decision maker that their networking functions are too complex for an external service provider to handle. Secondly, it is the fear of services outages that may hamper the relationship with their customers and this can affect them in the long term.
Thirdly is the belief of the executives that networking is something core to their business and that is something that cannot be handed over to an external party to manage. But researches show that the there are many potential benefits of network outsourcing.
Benefits of network outsourcing
The benefits that a company can reap by network outsourcing are:
- Companies can generate up to 40% cost saving. By outsourcing networking, the firms will be able to source in high-quality talent at a lower cost, group the fragmented operations and leverage the resources across the company.
- Improve efficiencies and service level. Firms will have the opportunity to experience increased efficiencies and improved service levels as service providers are obliged to deliver the agreed service level as per the contractual agreement. A well established global outsourcing provider will have the capability to apply the efficiencies they have generated for another client and thereby bring in operational improvements.
- The companies will be able to deal with growing demand for data services. The service provider will increase the network capacity which will facilitate the company to deal with the increasing data required for their business.
Network outsourcing is still in a very nascent stage. The companies should look out for an outsourcing partner who can manage the entire network life cycle management.
For outsourcing companies also network outsourcing is an opportunity. Service providers can extend their network outsourcing activities to other areas including testing, provisioning, inventory data management and expense management.
Network outsourcing will help the companies to extend their networking capacities while keeping the cost as low as possible.