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Network Outsourcing

Definition - What does Network Outsourcing mean?

Network outsourcing refers to migrating parts of a network to third-party company services in order to effectively shift the burden of administration and operation away from an enterprise. Network outsourcing goes along with other trends like cloud vendor services, virtualization services and other kinds of third-party outsourcing that are helping businesses of all sizes and in all industries to renovate their IT architectures for the future.

Techopedia explains Network Outsourcing

In network outsourcing, business leaders have the option to either outsource an entire network operation or connect parts of an in-house design to larger or more extensive or capable services. For example, some IT experts refer to a set of levels of network outsourcing, beginning with outsourcing capacity, then extending to managed operations, and, finally, to hosting services.

The philosophy behind network outsourcing is that individual companies can get more talent, more capacity and more value as clients of a third-party vendor than they can by building all of their IT systems in-house. Through an economy of scale, vendors are able to offer a lot of expertise and specialized services at a discount because they can collectivize their services for multiple clients. This is often referred to as a multitenant model, which comes with a lot of value, but also carries some risks attached to a client’s control over proprietary IT systems and to questions around security.

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