Networking services market to fall in next two years

While more than half of firms have used networking services, just 33% plan to use them again over the next two years, says research

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IT buyers are moving away from using external networking services, according to new research from Computer Weekly and TechTarget.

The survey showed 55.5% of organisations had used outside services for their networking, wide area network (WAN) and unified communications deployments. However, just 33% said they planned on outsourcing these tasks in the next two years.

Only 13% of those who hadn't used external services for networking before planned to try it for size in the next 24 months.

A drop in budget was the main reason for moving away from the services, as 28% believed their specific service budget would fall – half of which said it would go down by more than 10%.

Two thirds said it was because they already had the skills in house, with just 9% blaming it on being too expensive.

Cisco was still the dominant provider of services for these companies. A significant 50% of respondents said they got their services from the networking giant, whilst 25% said they sourced it from Cisco authorised resellers or integrators.

The nearest significant player after that was HP, which 24% of the IT buyers said they got services from, followed by IBM at 18.5%.

The top two reasons for choosing the providers were the expertise they had on specific networking disciplines or due to an existing relationship – cited by 58.7% of respondents equally. Yet, even in times of tightening budgets, only 33.7% said best price was their main driver when choosing a service provider.



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