Outsourcing fails the grade

Through 2003, senior executives will give failing grades to 50 percent of all outsourced IT deals because they don’t deliver the anticipated value, according to Gartner Inc.

One problem is that many companies have failed to develop a comprehensive strategy and instead try to fix problems and change contracts on the fly. Gartner estimates that fewer than 30 percent of companies have formal plans for managing long-term relationships with external IT service providers.