Did they say why they want to be put on their own network? We have no knowledge of how your networks are set-up. In fact, the set-up of your networks could be hindering either tools they'd like to use, their ability to operate efficiently, or to get around annoying and unneeded network restrictions imposed by your IT department.
Your best bet is to ask them why they want this. Press the point to find out what the true motivations are behind this desire. You might be surprised. If you're their manager, trust them and push for it too.
Edit:
To help, here are some very valid reasons to want their own network:
- They want to test the application over the network with the network stressed to the max without affecting anyone else in the company.
- The client is using a different network set-up and they'd like the option to reconfigure their network to mirror the client to better diagnose or preemptively diagnose potential problems
- They're doing overnight builds/testing/regression/what not with an automated script but finding current network settings/programs conflicting or interrupting execution but the IT department is adamant about issuing not an exception for any group.
- They want control over the network. It takes 2-3 weeks to get a work order into the IT department after filling out miles of paperwork just to add another user or something similar. They're frustrated by the beaurocracy and it's impeding development.