…Trust still an issue when outsourcing…

While cost remains a primary driver for outsourcing network services, few IT managers are able to measure their savings, according to new research published by network specialist, Telindus.

Over a half of the 1,000 companies surveyed said they outsource some or all of their network infrastructure, yet four in ten of those that do (41%) are unable to estimate the resulting cost savings. This situation is likely to further hinder board-level IT investment decisions, according to Telindus marketing director, Danny Williams.

“There must be clear metrics in place to justify any IT or network outsourcing spend in order to better track its value to the business and avoid a disconnect with senior management,” says Williams. “Cost is a key factor, but it’s not the only one. IT managers also need to consider the strategic value of network outsourcing in terms of network stability and the measuring of business productivity improvements as a whole.”

Telindus’ research also found that, despite an increase in network outsourcing, trust is still an issue for companies looking to take advantage of its benefits. The most frequently stated reason for not outsourcing was ‘I want to be in control of my network infrastructure.’ (54%). One in eight companies went as far as saying that they wouldn’t trust a third party with their network.

“It’s natural to feel apprehensive about outsourcing the network or IT functions, but any outsourcing relationship must be flexible and collaborative,” says Williams. “The successful companies lay down clear boundaries at the start of a network outsourcing partnership and set SLAs that reflect the business environment. In this way they can reap the productivity and cost benefits of outsourcing without losing management control.

“What this independent research tells us is that overall, whilst there is still a degree of reticence to outsourcing per se, forward-thinking companies are more and more ready to consider the outsourcing of operationally mature elements such as network management, as this enables them the time to consider strategy and policy such as the introduction of IPT,” he concludes.

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