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The state of outsourcing

What are the challenges of outsourcing? What are the new emerging markets? What trends are you seeing?

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Challenges: The key challenges of outsourcing are identifying what aspects of the IT operation to outsource; determining which outsourcer is best qualified to assume responsibility for the IT function; establishing reasonable performance objectives and developing an effective monitoring process.

Emerging markets: Business process outsourcing that assumes responsibility for specific business functions, as well as the underlying IT operations. Managed services that assume responsibility for specific IT functions such as networking, desktop support, messaging, security or storage.

Trends: Outsourcing is no longer a restricted to mega-deals that entail the wholesale transfer of an entire IT operations from an enterprise to an outsourcer. Instead, a variety of specialized managed services provide a selective 'out-tasking' alternative for enterprises of all sizes.

This was first published in February 2005

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