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Cost reduction through application outsourcing is not easy, but it is possible by engaging in strong vendor management practices. Application outsourcing is also an excellent strategy for achieving financial flexibility during uncertain economic times, as it gives IT managers the ability to scale staff up and down as needed.
This research note discusses:
- The use of application outsourcing as a strategy to reduce costs.
- The use of application outsourcing as a strategy to minimize financial risk during uncertain economic times.
- Case studies that illustrate successful cost reduction and minimized financial risk through application outsourcing.
Carefully managing the outsourcing relationship to reduce costs is just one strategy that will be discussed in this research note.