11 outsourcing myths debunked

Outsourcing has evolved — and so too have the misconceptions around what makes a successful sourcing partnership in the digital era.

11 outsourcing myths debunked

Even as CIOs enter their third generation of IT services deals, misconceptions persist about the practice of IT outsourcing. Worse, new illusions have begun to emerge as outsourcing approaches have evolved. Achieving desired outcomes when working with third-party providers depends on clear-eyed understanding of what’s possible and what’s not, what responsibilities remain with the buyer and what new capabilities are required, what’s changed about outsourcing models and what remains the same.

CIO.com talked to IT outsourcing experts who work with IT buyers and vendors to help bust some of the most common myths around outsourcing today — and to aid IT leaders in setting up their outsourcing engagements for success.

Myth: IT outsourcing is dead

There is a commonly held notion that IT outsourcing is no longer a valuable strategy, and cost savings have evaporated. While it’s true that IT outsourcing, as we had come to know it, may indeed be dead, the next generation of outsourcing deals could deliver even greater savings for forward-looking CIOs.

“We have entered the next generation of outsourcing where labor arbitrage and offshoring are being replaced by extreme automation and public cloud adoption,” says Steve Hall, president of EMEA at outsourcing consultancy Information Services Group (ISG) and a partner in its digital solutions group. “The new era of outsourcing is resulting in 40 percent savings or more with rapid ROI as service providers reinvent their offerings to integrate cloud solutions, automation, and modern organizational structures.”

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