What does it mean when your core IT vendors outsource their IT operations?

2010 will likely be a strong year for information technology outsourcing. For companies where IT is not the core business, it can seem compelling, especially from a management perspective.

Reducing operating expenses has been a focus of many organizations during the last few years, and the services contract should provide a high level of expense predictability. There are also strategic objectives that outsourcing IT operations can help achieve, like becoming a more efficient global operation, to be considered. And finally, who in management doesn't like the "one hand to shake, one neck to break" idea to avoid internal finger pointing?

Earlier this week, I read about Microsoft's outsourcing deal with Infosys Systems in India. Microsoft is not the first or only significant IT vendor whose products are an important part of many enterprise infrastructures to outsource. What I really struggle with is this:

If these are the vendors selling us the software, hardware, managed services, tools, and best practices we are depending on to run our IT operations, and they have surrendered their own IT operations to another, dare I say, more efficient vendor, well...what does that say?!

What do you think?


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