All rumors to the contrary, the pendulum is not starting to swing away from IT outsourcing and toward a reintegration of IT services into corporate infrastructures. In fact, it's just the opposite. Such expenditures have doubled in the past three years alone. And the outlook for the near future is at least as bright, despite the economic downturn. Networked IT operations are becoming more and more technologically complex.
Experts are hard to find and expensive to hire.
And trying to run a complex IT operation when your core expertise is manufacturing widgets is an impossible stretch for all but the largest companies. Outsourcing non-core activities is an effective way to keep costs low. It is the central mission of every service provider to develop the people, processes and technologies to deliver quality service at a competitive price. Their existence depends on it. We live in an age when competitors can spring up overnight.