Strategic Sourcing of Information Technology Resources has become prevalent in the Global Economy and will expand in the future.  Emerged source countries available include India, Eastern Europe and China.  The benefits for utilizing outsourcing include:

• Access to World Class capabilities

• Cost reductions amounting to as much as 75% expected

• Improve focus on core responsibilities by alleviating internal responsibilities and frees them up for other purposes

• Improve level of support service

• Reduces Infrastructure needs and improves utilization and capability for fast change

• Improves value to Customers

Organizations must manage outsourcing programs effectively to achieve expectations.

Risks associated with strategic sourcing include:

• Reduce span of control within the Central Organization

• Reduce Information Technology capabilities

• Increase dependency upon external sources

• Increase difficulty of Project Management and communication

• Decrease in security