Offshore outsourcing is gaining momentum as more and more companies realise the potential benefits to be gained from using third-party experts to run their IT systems.

Far from an abdication of responsibility, it is viewed as an opportunity to improve processes and allow a company to focus on its core business activities.

The list of proponents, from high street financial services companies to public sector departments, is growing by the day. Increasingly it's an option that UK companies simply cannot afford to ignore.

But outsourcing has generated more than its fair share of controversy. As offshore firms scramble to grab their share of this lucrative pie, unions and contractor groups are among those to express concerns about the impact on the IT industry and the UK economy as a whole.

Already analysts are predicting a major shakeout of the Indian call centre outsourcing market as competition for the best talent pushes up prices and wages. Back at home, it has been suggested that the trend towards offshore has already pushed down domestic rates for IT staff.

Realistically, it's not an issue that will go away. But finding the best strategy for your business is at worst a minefield and at best a complicated business decision.

How much should be outsourced, and to which specialists? Is offshore the best bet? What elements make up the most valuable contracts?

Check out vnunet.com's Special Report to keep abreast of developments.