Service providers shed long-term costs

October 31, 2009 08:00 PM

Since the dotcom crash of 2001 wiped $5 trillion off the value of Nasdaq-listed technology companies, communications service providers (CSPs) have spent $100 billion to shed their long-term costs.

Outsourcing various network, IT and business functions to third parties has offered businesses a key method to rework balance sheets. Yankee Group forecasts that annual expenditure on third-party services will double by 2013 and that communications service providers will spend an additional $145 billion during the next five years.