Time to address those outsourcing misconceptions

Nearly all organisations will outsource at least some of their IT operations by 2006 but there are still some widespread misconceptions about the results of doing so.

Common assumptions are that IT expenses will automatically be reduced, vendors use best practices, offshoring will offer huge savings and external outsourcers are better, faster and cheaper than internal IT, according to experts at Meta Group.

The analyst house has released the 'Outsourcing Desk Reference', a report for users to help them look at what it calls the outsourcing life cycle.

Dean Davison, Meta Group VP and director Outsourcing and Service Provider Strategies, warns vendor selection or negotiation shouldn't be an organisation's first step.

Key steps - widely in line with other expert advisors - should include:

Setting the right expectations
Working out short- and long-term business objectives and risks
Selecting vendor candidates
Negotiating contracts
Managing the outsourcing relationship properly - using a strong, dedicated team.

More details on the Meta Group methodology and report are available at www.metagroup.com or by calling 01252 819494.