Outsourcing has been a part of IT for more than 20 years. During that time, outsourcing models have changed dramatically, but the fundamental strategy has always been the same--arbitrage. Arbitrage is basically taking advantage of price differences for similar products available in different markets. You buy low in one market and sell higher in another. The dirty little secret about these old outsourcing models is that, like all arbitrage activities, the opportunity eventually disappears as markets adjust to changing conditions.
In outsourcing, as in all arbitrage activities, the opportunity eventually disappears as markets adjust to changing conditions. Guest columnist and utility services advocate Jim Leach says there is another way.