The most frequently outsourced commodity in IT is infrastructure. While cost reduction is the primary objective, success drivers within outsourcing initiatives are complex. Evaluate potential infrastructure outsourcing opportunities using clear cost saving criteria to achieve success.

Why Outsource Infrastructure?

Info-Tech finds that while cost reduction continues to be an important consideration for IT outsourcing in most companies, other factors are becoming increasingly important. Reasons that trigger IT leaders to consider outsourcing include:

• To increase service availability without increasing IT headcount.
• To gain access to scarce skills/resources.
• To convert fixed IT costs into variable costs linked to actual usage.

Outsourcing Candidate Evaluation Criteria

Building a business case to outsource IT infrastructure based on lowered costs for technology assumes that economies of scale will provide benefits. But technology costs comprise only a small portion of the total value in an outsourcing engagement and will provide limited cost reductions at best, especially for...