How to Choose the Right Partner to Outsource Network Processes?
With over twenty-two years of experience Xavier Surentherathas, Senior Director, Partner Sales, Park Place Technologies leads and oversees the organization’s sales policies, goals, and initiatives related to the company’s short and long-term sales strategies. He evaluates the effectiveness of the sales team.
The Artificial Intelligence (AI) phenomenon continues to sweep across the global IT industry as companies look to make the most of its potential for transformatory change. Despite the numerous opportunities it presents, Generative AI (GenAI) also brings with it a substantially larger burden on IT infrastructure and operations.
In a bid to deal with the additional workload, we are witnessing a trend of increasing reliance on external or third-party services for IT operations. A recent report by IDC reveals that over 70 percent of surveyed companies prefer to partner with third-party maintenance providers in 2024, a sharp rise from less than 40 percent a decade ago.
The effects of increased AI-driven load and rising reliance on outsourced processes are visible in physical sites that are crucial to basic IT operations. These include the likes of data centres and network operations centres (NOCs).
An NOC is a location or site where telecommunications network systems are managed and meticulously monitored, usually round-the-clock. These centres play a key role in providing consistent, reliable, and quick connectivity for IT organizations, aiding business operations by ensuring optimal network performance. Crucially, NOCs are also amongst the very first lines of protection against network failure and potential security threats. They accomplish this by:
● Enhancing network performance through updates and regular maintenance.
● Immediately addressing potential problems that might negatively impact network quality.
● Keeping an eye out for security threats such as malware attacks or breaches.
● Monitoring and managing network user or website visitor count that could become overwhelming.
While NOCs are undoubtedly an integral part of an organization’s attempts to minimize downtime, these locations do involve a considerable amount of monitoring, observation, and management. As a result, a growing number of IT companies are actively looking to outsource the management of their physical sites to external specialist firms. The benefits that companies stand to obtain from this include:
● Cost efficiency, since third-party maintenance firms often offer all-encompassing packages for end-to-end servicing, which works out as the more affordable option.
● Access to specialized knowledge, expertise, and the latest technologies of external partners, which can then be leveraged for better network quality.
● Increased focus on core business functions, since outsourcing base processes frees up internal teams, allowing them to prioritize strategic initiatives rather than devoting time to monitoring routines.
Organizations that capitalize and form strategic partnerships will be well-placed to derive the full range of long-term benefits in an industry where innovation will continue to drive up the essential need for efficiency
● Reliability, a good indicator of which is the partner’s track record, previous clients, crises overcome etc.
● Flexibility and scalability, both of which have become even more important with the rise of AI. Data centres and NOCs have no choice but to be prepared to take on and withstand increasing workloads without missing a beat in terms of performance.
● Security and compliance with regulations, which are often strict due to the sensitive nature of the information that is stored within these sites. Importantly, regulations and laws can differ from location to location; meaning third-party partners must be aware of the differences and agile enough to comply with them.
There are numerous parallels between the rise of AI systems and the increase in outsourcing network management. Studies indicate that this relationship will only continue to flourish. According to a 2024 study by Global Market Insights, the data centre and network third-party maintenance market is currently valued at USD 20.9 billion. It is projected to grow globally at a CAGR of over 15 percent before going past USD 75 billion in 2031, adding over thrice its current value in just six years.
More importantly, the role of NOCs in maintaining safe and secure IT infrastructure is still evolving. Organizations that capitalize and form strategic partnerships will be well-placed to derive the full range of long-term benefits in an industry where innovation will continue to drive up the essential need for efficiency.