Network outsourcing

What is network outsourcing?
Network outsourcing refers to the migration of portions of a network to third-party services in order to effectively move the administrative and operational load off an enterprise. Network outsourcing goes hand in hand with other trends such as cloud vendor services, virtualization services, and other types of third-party outsourcing that are helping companies of all sizes and in all industries renovate their IT architectures for the future.
With network outsourcing, business leaders have the option to either outsource an entire network operation or to combine parts of an internal design with larger or more comprehensive or more powerful services. For example, some IT professionals refer to a number of levels of network outsourcing, starting with outsourcing capabilities, then extending to managed operations and finally hosting services.

The philosophy behind network outsourcing is that individual companies can get more talent, more capacity and more value than third-party customers than if they all built their IT systems in-house. An economy of scale enables providers to offer a lot of know-how and specialized services at a discount, as they can collectivize their services for several customers.

This is often referred to as the multitenant model, which is very valuable but also has some risks associated with a customer's control over proprietary IT systems and security related issues.