This is the number 1 misconception about mainframe outsourcing. Contrary to what you might read in a service provider’s marketing brochure, IT outsourcing is rarely a silver bullet solution to containing costs, reducing risks and ensuring top line growth for organizations. It is, at best, a strategy arrived at after careful consideration of factors ranging from budgetary priorities, staff availability, facility and space issues, and operational performance.
Pressures to reduce cost alone generally do not justify the outsourcing decision. As a rule, the best arrangements involve the outsourcing of mainframe operations and processes that are routine and can be delivered more cost-effectively by a service provider. That said, other factors that may influence the outsourcing decision may have a legitimate basis in business priorities and budgetary pressures. A clear-headed analysis of both the rewards and the risks of the decision must be made, and objectives must be set that can be used to evaluate options and to ensure that the expected benefits are being realized.
Posted by Adrian