Most IT organisations will have to adopt outsourcing by 2005, according to analysts Meta Group.
A new 'Metaspectrum' market evaluation of US outsourcing claimed that nearly all IT organisations will outsource at least one mission-critical technology operation by 2005.
Report author Dean Davison, of Meta's service management strategies unit, said that outsourcing is growing at 15 to 20 per cent annually and much involves mission-critical operations.
He explained that outsourcing can enable business to move faster, become more efficient and sometimes reduce support costs if contract structures are carefully calculated and negotiated.
While the leading outsourcing vendors are also the largest, vendors with niche offerings or targeted geographical coverage can perform at levels close to those of the leaders.
And when IT managers come to create outsourcing contracts they should look at the ability to meet performance criteria rather than the size of the outsourcer.
The report also warned that it is critical to understand how to gauge the price and service competitiveness of outsourcing arrangements.
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