New Strategies in IT Outsourcing draws on extensive selective and large-scale outsourcing case material. Its focus is very much on the 'how to' question of setting up and managing an outsourcing arrangement.
Part one of this Report details the main trends, the reasons for outsourcing and the lessons that can be learnt.

Part two is the detailed consideration of additional key sets of issues emerging from the research which was undertaken, as particularly important to practice, but also particularly difficult to handle. These are:

Development of an IT sourcing strategy
Management of large-scale outsourcing arrangements
Management of multiple suppliers
Experiences and lessons from exercising the 'insourcing' options
Learning from the UK and US public sectors
Capabilities and skills required for the changing IT function

Chapter One: IT Outsourcing
This chapter provides an overview of the growth in IT outsourcing and the emerging trends, focusing mainly on the UK and Europe. Also examined are the reasons why European organizations outsource, the IT sourcing options considered and the advantages and disadvantages of outsourcing some or most of their IT assets, people and activities.

Chapter Two: IT Outsourcing in the US: Experiences, Trends and Lessons
Chapter two focuses on the key experiences and lessons emerging from the US - the dominant market for external IT services - where a number of trends and practices are in advance of the UK and Europe but may well be adopted during the next five years.

Chapter Three: A European Survey of IT Outsourcing
This chapter details the results of a survey conducted by OXIIM: University of Sheffield Management School/Business Intelligence into European and US IT outsourcing practices. The questionnaire contained questions aimed at eliciting an overview of practices and outcomes in IT outsourcing. The rationale for the survey was to capture an overview of the major IT outsourcing markets and compare how they have changed over the last three years.

Chapter 4: Developing an IT Outsourcing Strategy
This chapter provides a structured way of thinking through IT sourcing decisions. The approach is based on the analysis of the survey data and of 53 researched case histories. In particular the levels of success achieved with different sourcing decisions in various sets of circumstances have been pinpointed.

Chapter 5: Managing Large-scale IT Outsourcing Contracts
One of the most well documented topics of IT outsourcing is managing the large-scale, single supplier contract. Large-scale outsourcing usually involves the transfer of assets such as hardware, development, operations, support services, and less commonly management activities. This chapter offers an opportunity to review these debates in the context of a detailed examination of three case studies from Inland Revenue, British Aerospace plc and the London Stock Exchange.

Chapter 6: Managing Multiple Suppliers: the Key Issues and Concerns of Client Organizations
This Chapter discusses IT Outsourcing arrangements in the context of multiple/selective arrangements. This is where the client organization decides to outsource some or all of its IT facility to a number of suppliers, as opposed to opting for a single supplier. Also discussed are the reasons for doing this. This chapter looks at the experience and practice of selective sourcing in the three case studies from ICI plc, BP Exploration and Wessex Water plc.

Chapter 7: The Value of the Insourcing Option
In spite of the prolific growth in IT outsourcing on both sides of the Atlantic, many organizations have not hitherto outsourced a significant part or all of their IT facility. Instead, organizations entering into outsourcing arrangements usually do so on a selective basis, where they may use one, or a number of suppliers for specific areas of IT service provision. This Chapter explores some of the reasons for retaining an in-house department and also looks at organizations, which have, or are considering, a joint venture.
Case studies from Eagle Star Insurance Ltd and the Bank of England show examples of insourcing and also give useful pointers to managing and dealing with suppliers.

Chapter 8: IT Outsourcing in the Public Sector
This chapter considers the privatization (outsourcing) of IT services in business in central and local government. Key concepts are market testing, compulsory and voluntary competitive tendering (CCT and VCT) and contracting out. The chapter also looks at developments in the much larger US Federal sector and examines in detail IT outsourcing possibilities in the context of the US Internal Revenue Service.

A case study from Hertfordshire County Council examines the impact of outsourcing on local government.

The case study on the Post Office considers some of the issues facing a more commercially focused public sector organization on whether to outsource more of its IT facility or retain its current in-house IT department.

Chapter 9: Key capabilities and Skills for the Emerging In-house IT Function
The final chapter presents nine key in-house capabilities that need to be retained and developed, and the skills needed to deliver them. It highlights the challenges that most organizations still need to confront if they are to make these capabilities a reality.