The New Reality for IT Outsourcing: Are You Asking the Right Questions?
For years, outsourcing IT services was synonymous with cost reduction. But in today’s environment, defined by digital transformation, cyber security risk, talent scarcity, and sustainability mandates, that mindset is no longer enough.
Procurement leaders across Europe now face outsourcing decisions that directly influence business agility, resilience, and competitiveness. The question is not whether to outsource, but how to make outsourcing work as a strategic enabler rather than a transactional fix.
What Procurement Leaders Are Saying
During a recent IT Professional and Support Services SpotLight, members of CASME’s global procurement community shared their motivations for IT outsourcing and preferred models via live polls. The results painted a vivid picture:
- Cost control remains critical, but it’s only part of the equation
- Agility and innovation are becoming just as important as savings
- Risk and resilience demand greater attention, particularly when contracts are misaligned or providers underperform
While motivations for IT outsourcing varied, what became clear was the breadth of issues Procurement must balance when finalising contracts.
The takeaway? To extract real value from outsourcing, Procurement needs to move beyond transactional cost discussions and ask the right strategic questions.
Practical Takeaways for Procurement
The message from CASME’s SpotLight was pragmatic: success in IT outsourcing isn’t about designing the ‘perfect’ contract, it’s about building a framework that balances agility, risk, and accountability.
Procurement leaders can begin by:
- Establishing clear, outcome-based measures tied to business impact
- Building collaborative governance models that include IT, the business, and suppliers
- Embedding resilience and sustainability criteria to protect long-term value
- Using continuous benchmarking and structured renegotiation to stay aligned with evolving priorities
This isn’t just about negotiating better deals. It’s about ensuring Procurement remains a strategic driver of digital transformation, resilience, and sustainable growth.
Procurement teams are no longer debating whether to outsource; the conversation has shifted to how outsourcing can become a competitive advantage. CASME’s SpotLight discussions between procurement leaders have identified seven critical questions to guide that journey.
Where to Go Next
CASME’s global peer-to-peer community provides members with benchmarks, best practice insights, and shared experiences to help procurement professionals navigate the complexity of IT outsourcing.
You can read CASME’s full blog here: 7 Critical Questions for Your Next IT Outsourcing Contract
To continue the conversation, join us at ProcureCon Europe, where IT outsourcing and digital capability will be the focus in shaping the future of Procurement.