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Network outsourcing market to increase at a CAGR of 4.7%

Press Release   •   Aug 30, 2013 09:17 BST

The network outsourcing market has been forecast to increase at a compound annual growth rate (CAGR) of 4.67% through 2016, driven by the increased profitability obtained when using network outsourcing, and the increasing number of end-to-end solutions.

Staying ahead in today's challenging business environment requires an established infrastructure for maintaining internal processes as well as external relationships with stakeholders.

IT infrastructure plays a crucial role in most of the organisational operations for ensuring business continuity, which also demands huge capital expenses, time and resources of the company.

Network outsourcing will help organisations to focus on their core businesses, rather than their networks. These solutions enable corporations and businesses to offload specific IT operations to the service provider, unlike in traditional outsourcing, where the entire control is transferred.

Increasing pressure on businesses to grow revenues by keeping the production cost low is driving the outsourcing market across the globe. Most leading manufacturers are opting for network outsourcing due to its numerous advantages over self manufacture of goods.

The outsourcing market is becoming widely popular and growing rapidly as most companies are feeling the need to outsource their jobs for saving production and service costs and managing their businesses intelligently.

Developing economies like India and China are the biggest market for the network outsourcing as these are the most populated countries with the availability of qualified man power and their readiness to work on lower pays.

The major challenge facing the network outsourcing market is the minimal adoption of network outsourcing by network operators in the US. There are huge and highly advanced network operators in the US such as AT&T Co., Verizon Wireless Inc., and Sprint Corp. with strong networks across the country. However, these network operators are investing more on network architecture than investing in network outsourcing.

Key players currently dominating the network outsourcing market include Ericsson Inc., HP Co., IBM Corp., and Nokia Siemens Networks.

For more information on the network outsourcing market, see the latest research: Network Outsourcing Market

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