The information technology outsourcing (ITO) and business process outsourcing (BPO) services markets, together with more recent offshore variants, have been dynamically expanding revenues, capabilities, and associated rhetoric, in equal measure, for over a decade. Outsourcing makes up a substantial and rapidly rising part of expenditure across corporations and government agencies alike. According to one estimate, ITO global revenues exceeded $US200 bn per year at the end of 2005. For many organizations, outsourcing is well above the parapet in sheer expenditure terms. However, much of this...

The information technology outsourcing (ITO) and business process outsourcing (BPO) services markets, together with more recent offshore variants, have been dynamically expanding revenues, capabilities, and associated rhetoric, in equal measure, for over a decade. Outsourcing makes up a substantial and rapidly rising part of expenditure across corporations and government agencies alike. According to one estimate, ITO global revenues exceeded $US200 bn per year at the end of 2005. For many organizations, outsourcing is well above the parapet in sheer expenditure terms. However, much of this increase has been happening incrementally, as a response to immediate market conditions and specific opportunities to cut costs, rather than through long-term strategic thinking. Moreover, despite the accumulated experience, learning has been painfully slow; there has been mixed success, and much conflicting advice.