Conclusion: Australian IT organisations should be setting the bar higher to extract maximum value from outsourcing arrangements. Furthermore, if the level of outcomes for many providers has been exceeded, it is often only because those expectations were set so low, with a focus on organisations pushing off low-hanging IT functions.

Clearly the blame in allowing the sub-optimal outcomes to occur is shared by both vendor and customer. Organisations must ensure that they are evolving the way in which they manage their outsourcing vendors to take advantage of cloud and utility based service delivery.

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