Outsourcing network services to reduce internal costs and optimize service delivery remains a worthwhile enterprise objective. However, cutbacks in many outsourcing and service provider budgets coupled with employee layoffs cast a long shadow over network outsourcing initiatives.
This research note discusses three reasons why outsourcing network services may not be a prudent business decision:
- Network outsourcing companies are resource constrained.
- Enterprise network services and service level needs will change.
- Service level contracts will be more difficult to enforce.
Because of the financial crush of the economy and its indefinite future impact on network service providers and outsourcers, outsourcing (even if cost savings appear certain) falls into a medium to high-risk category and is far from a slam-dunk.
