Ask the Board – April 11, 2016 |LYLE BUNN

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On what basis should a network owner/operator make the decision to operate the network in-house or outsource the operation?


Culture and staff governance drive the operations sourcing decision. Organizations that prefer to operate core operational systems in-house and want to contain operations within their own walls as much as possible will be comfortable with internal operations. When there is strong confidence and competence in vendor contracting and managing, outsourcing may offer the best advantage.

Staff management is a key factor. In organizations that operate under labor agreements, the internal operations of a digital media network could mean that changes in the scope of a job will require job reclassification as well as the reclassification of related aspects of staff role management. This is especially challenging in a bargaining unit situation.

The need to accommodate staffing backup for network support due to holidays and unplanned absence or training days makes outsourcing preferred by end users.

Once staff is allocated to an initiative and trained, it is disruptive to remove them. As such, outsourcing network operations is commonly preferred.

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