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ISP RESOURCE CENTER
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WHY OUTSOURCE
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Internet Service Providers know all too well the many obstacles and challenges faced on a daily basis:
- How do I offer more without incurring overwhelming costs?
- How do I replace or upgrade outdated equipment without going broke?
- How can I afford to offer my subscribers the best access, products and services?
There is a way to make business easier. Products and services exist that are capable of reducing costs and maximizing profits. Outsourcing can be an ideal solution for ISPs.
For pioneers of the Internet industry that rolled out their own network, the decision may be a difficult one. After all, turning over the business that you nurtured for years is a tough decision. While many ISPs worry that outsourcing may cause them to lose control of their subscriber base, this is simply not true. Outsourcing simply decreases costs, and in many cases, increases the quality of service offered.
While it made sense a few years ago to develop private networks, the original reason for doing so is no longer valid. Now wholesale connectivity providers specialize in deploying and maintaining highly reliable and stable networks and connectivity solutions.
Many private, local and regional ISPs are finding that becoming a virtual ISP allows them to offer value added services to end-users that they simply couldn't offer to them any other way. For instance, local and regional ISPs may outsource dial-up access in order to gain national coverage, allowing them to reach, acquire and better service more customers. In addition, expanded coverage allows an ISP to achieve sufficient scale and geographic reach, which is becoming increasingly important to mobile, upscale users.
Another significant advantage to outsourcing is allowing someone to manage and worry about hiring, training and maintaining a staff capable of delivering and supporting national connectivity so that areas such as marketing and growing a subscriber base can receive greater focus.
For those that are new to the industry, outsourcing is a means of getting in the game without spending outrageous amounts of time and money building a network from scratch.
Becoming a Private Label ISP allows the focus to be placed on business channels and growing subscribers.
According to an article by Boardwatch Magazine, a 20,000-user ISP that elects to outsource over building a proprietary network would save over 40 percent a year national network configuration costs. The savings result from an ability to share common costs such as Telco and ATM port fees and collocation costs.
In addition, providers of outsourced services can offer additional cost savings and efficiency via billing solutions, branded customer service and auxiliary products and services than can make an offering complete.
Outsourcing fits into a virtual enterprise model that will save many ISPs time and money. Learn more about the solutions IKANO offers and find out if outsourcing is right for your ISP.
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