Spending on outsourcing is increasing. Many CIOs are now willing to outsource strategic IT functions and applications. Still, outsourcing will remain focused on application and Web development, integration and hosting. Few are yet ready to outsource project management, or such sensitive areas as security and data storage.
IT executives are generally satisfied with their outsourcers, even though most believe outsourcing is overrated as a cost-cutting strategy. CIOs will continue handing off work to outsourcers—as long as that work falls within their comfort zone.