A method for operating a router has the following steps. First, the router receives a data packet to be forwarded, the data packet having an indication that it is to be routed by tag switching to a destination router, the destination router to forward the packet to a destination computer. Second, the router prepends a tag to the data packet, the tag to be used by the destination router to route the data packet to the destination computer. Third, the router prepends an encapsulation header to the data packet, the encapsulation header to route the data packet to the destination router. Fourth, the router transmits the data packet with the encapsulation header and the tag for routing through the network to the destination router.