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Outsourcing network services reduces internal costs and optimizes the delivery of telecom services for numerous IT organizations. However, cutbacks in many outsourcing and service provider budgets, coupled with employee layoffs, have cast a shadow over network outsourcing initiatives.

This research note discusses three potential reasons why network outsourcing is not always a practical business decision:

  • Many network outsourcing companies are resource constrained.
  • Enterprise network services and service level needs change.
  • Service level contracts could be more difficult to enforce.

Those enterprises considering outsourcing certain network services should realize there is now a medium or higher risk factor to consider - even if cost savings appear certain.

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