IT Offload: Managed/Hosted Service Strategies

Managed and hosted services have become a core component of most IT strategies. Selective outsourcing, in which IT leaders evaluate technologies that a third party can handle better, is nearly ubiquitous, with 87% of organizations engaged. Though all sizes and types of companies use managed and hosted services, we most commonly see large, global organizations with relatively new CIOs doing so. The top driver for managed/hosted services has shifted this year from cost savings to lack of staff/expertise. Once outsourcing is complete, though, IT leaders are only mildly successful at redirecting the remaining staff into more strategic roles. Developing a successful selective outsourcing strategy requires some specific best practices, such as leveraging business-technology liaisons, developing a bi-directional escalation policy, and developing a true partnership with the vendor.