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EIU survey reveals trend towards increased network service outsourcing

Global executives report they plan to outsource an increasing amount of their network services in the next three ye...


October 29, 2004  


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Global executives report they plan to outsource an increasing amount of their network services in the next three years, according to a new survey conducted by the Economist Intelligence Unit and sponsored by communications provider Infonet Corp..

In the survey, which polled 85 senior executives of multinational corporations, including more than 25 chief technology and chief information officers, a majority of those surveyed reported that their companies still develop and maintain data network services in-house.

However, more than two-thirds of respondents reported their companies plan to outsource at least 25% of their network services by the year 2007.

“As capacity prices have declined in recent years, many multinationals have tended to build their own international data networks on which to run their critical e-business applications,” said Jose Collazo, chairman, president and CEO of Infonet.

“However, as this survey reports, more and more global businesses are realizing the benefits of outsourcing, which include cost savings, reduced IT overhead and the ability to focus on core business areas.

Full results of the survey are available at www.infonet.com.