Gartner Research

Best Practices: Saving Costs Through Outsourcing and IT Services

Published: 11 February 2009

ID: G00164664

Analyst(s): Frances Karamouzis

Summary

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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