The big question about sourcing is not whether to do it, but how soon.

An overwhelming majority of CIOs say their enterprises cannot handle their IT services alone and are willing to create partnerships with service providers. But few CIOs have strategies to work with external service providers (ESPs) or the skills to manage the relationship once it's established.

Decision-makers need to carefully craft their strategic sourcing plans so they allow for partnerships; these partnerships will enable their businesses to become more agile. The four phases of Gartner's strategic sourcing process take enterprises from the initial decision to strategic source through ongoing management of the partnership during the life of the contract. The process takes into account future objectives, new opportunities and the potential for change.

As a potential buyer, you should be certain about your enterprise's goals and direction before trying to determine which services should be handled by others and what to look for in a service provider. Then, you must set up principles of contract flexibility and realistic expectations about cost and service benefits before a service provider can be intelligently selected. Contract negotiations should not get dragged out. They should result in a contract that is flexible and includes clear performance measures. And once your partnership is underway, it must be regularly monitored and managed to account for shifts in circumstances, needs and opportunities for innovation.

Service providers have their own concerns. As stated in Gartner's report "Industry Shakeout Looms for IT Services and Sourcing," winning vendors in the new sourcing landscape will be those who think strategically, rather than tactically. No longer will pursuit of the tactical "killer app" suffice among vendors; success will be determined by those with a service-oriented "killer attitude."