On-the-Cheap Insourcing Frustrates Outsourcing

by Vince Kellen

Conventional thought suggests that in many cases, organizations can take costs out of their IT infrastructure management by transferring those activities to a vendor that performs those activities cheaper and better than they can. Too frequently, IT shops wishing to do this get sticker shock on the cost of moving these low-value activities to an outsourced service provider.

Why the sticker shock? Shouldn't a vendor with the proper scale and expertise be able to do the same for less?