Gartner Research

Best Practices: Saving Costs Through Outsourcing and IT Services

Published: 11 February 2009

ID: G00164664

Analyst(s): Frances Karamouzis


Enterprises often outsource to cut costs, but fail to assess how outsourcing will achieve these savings. Businesses need to analyze the sources of savings to achieve sustained long-term benefits.

Table Of Contents
  • Overview
  • Understand the Sources of Value and/or Business Benefits From IT Services
  • Understand What Determines Price
    • Why Is the Service Provider Less Expensive?
    • When Is the Service Provider More Expensive?
  • The Strategic Imperative
  • Understand the Sources of Savings
    • Question 1: Efficiency-Based Sources of Savings
    • Question 2: Effectiveness-Based Sources of Savings
    • Question 3: Agility-Based Sources of Savings
    • Question 4: Time Factors Evaluated in Savings
    • Question 5: Variables Affecting Savings
  • Recommendations

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