Counting the cost of IT outsourcing

Outsourcing information technology promises huge savings for companies. But, as David Arminas reports, the risks are just as large

Outsource your IT function on long-term contracts and save millions, even billions, of pounds. That appears to be the case with this summer’s announcements of major strategic IT initiatives, including those of Sainsbury’s, Rolls-Royce and BP.

Such agreements are the stuff that can make a purchaser’s reputation. But they can also break it, and there are enough...

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