Outsourcing is broken and it is costing YOU, personally, money Outsourcing is broken and it is costing YOU, personally, money The outsourcing industry is in the crapper. There are precious few outsourcing virgins out there, there are virtually no mega deals left in the market. The service providers have economic models still suited to the "early and good old days", they still pay huge salaries and commissions to staff who cannot now sell economic large deals, their own marketing department are undermining the whole of their economic proposition with "cloud everything, pay per unit, plug and play anything, minimal commitment" and all at commodity pricing and near zero profit margin. With large over-supply in the market further consolidation is imminent, especially in tier two and three suppliers the most likely be acquired in the short term, such as Xchanging, Phoenix IT and even Unisys. Clients, including the outsourcing industry bedrock of central and local government, have ceased buying on a large scale, favouring plug and play, short term, zero asset transfer type transparent deals where tier three providers (Capita, Serco, et al) regularly succeed in beating tier one providers (IBM, CSC and HP) by virtue of their agility and instant and devolved decision making down to middle management whilst the tier one providers still decide via investment committees and achingly slow internal processes. Then there is the fact that tier one's do not provide the services they say they do -- for example BT offers but does not provide all