Perhaps the single largest reason why large telecommunications users consider turning over internal operations to external service providers is competition. Competition has led to advanced services at reduced costs. Bob Fortna Outsourcing is one strategy that is used by many commercial enterprises, and it is a viable option for state and local governments as well. What's happening in California is a good example of a state working with industry leaders to meet its telecommunications needs. If the motivation is to save money, I predict the state will be unhappy with the result.
States add value to private-sector offerings and resell services to state agencies.
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