"The whole notion of outsourcing has become more interesting in the marketplace, so this is a good time for vendors to get back in," Helen Chan, analyst for The Yankee Group, said.
Adding Surebridge's application services broadens NaviSite's portfolio, particularly in the mid-market, which Yankee defines as companies with 500 to 2,500 employees.
"They can provide more of a complete solution for their end users," Chan said.
Being able to offer PeopleSoft applications gives NaviSite services that may be of interest to the enterprise market, Yankee analyst Andy Efstathiou said. But the difficulty will be in convincing companies to open their wallets.
"It certainly makes them more compelling to enterprises, but they'll still have to make that case," Efstathiou said.
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