Procurement leaders in 2025 face mounting pressure to deliver digital capability at pace, without sacrificing control, compliance, or value.  Outsourcing IT professional and support services remains a powerful option to achieve this, particularly as cloud and hybrid IT models mature, AI adoption and automation accelerate, cyber security threats intensify, global talent remains scarce, and expectations for sustainability grow. Increasingly, organisations are using outsourcing as a route to cost efficiency, while also enabling the agility and resilience needed to deliver digital transformation and solutions at speed.

Yet outsourcing is not without complexity. Misaligned contracts, weak supplier performance, underestimated risk, and rising costs continue to undermine value. During the recent IT Professional and Support Services SpotLight, members of the CASME community shared their motivations for outsourcing and the commercial models they rely on through interactive live polls. While responses varied, what stood out was the breadth of issues procurement teams must balance. Against this backdrop, seven critical questions stand out – questions that every procurement manager should carefully consider before finalising their next IT outsourcing agreement. These questions form a practical framework to turn outsourcing from cost control 
to competitive edge

1. What are the underlying reasons for outsourcing?

Cost reduction remains a familiar justification, but other factors – such as access to scarce skills, service quality, scalability, innovation, compliance, and speed-to-value – are now equally important. Procurement leaders should ensure that the primary rationale and secondary objectives are explicitly understood and reflected in the scope, pricing, and performance metrics. Avoid the pitfall of attempting to achieve everything within a single agreement; it dilutes outcomes and complicates governance.

2. Which sourcing model fits organisational strategy and maturity?

CASME members highlighted a variety of preferred models, ranging from single-provider managed services to multi-sourcing, hybrid structures, and SaaS. Each model has distinct benefits and risks. Key factors guiding the choice should include enterprise architecture and IT strategy, operating-model maturity, and risk appetite. If integration complexity is high, establish a clear service integration and management (SIAM) approach with well-defined accountability across providers.

3. Are service levels and KPIs outcome-based and experience-based?

Traditional input-based measures are no longer sufficient. Procurement teams should insist on key outcome-driven SLAs that link directly to business objectives – availability where it matters, time-to-restore for critical incidents, change success rates, and automation efficiency. Where appropriate, add experience level agreements (XLAs) that track end-user satisfaction alongside operational delivery. This holds providers accountable for business outcomes, not just technical performance.

4. How will risks be governed?

Regulatory compliance, data protection, cyber security, and supplier continuity are perennial concerns. Contracts should contain robust audit rights, data residency and protection clauses, segregation of duties, tested contingency plans, and clear accountability. Procurement leaders should schedule regular evidence-based risk reviews, especially in multi-provider environments where integration challenges are most pronounced.

5. Is sustainability genuinely embedded (not just referenced)?

Environmental and social criteria are no longer optional. From e-waste management to carbon reporting, diverse supply chains, and adequate worker protection, sustainability should be integrated into supplier obligations with transparent metrics and regular reporting. Procurement teams who omit ESG from contractual obligations can leave organisations vulnerable to reputational harm, shortfalls against sustainability objectives, and missed opportunities for genuine efficiency gains. 

6. How resilient is the supplier base?

Over-reliance on a single provider or location can expose the business to sudden continuity risks. [SD2] Take a balanced approach and strengthen supplier partnerships through knowledge transfer, exit and transition planning, geographic diversity, and selective retained in-house capability. Hybrid models that keep options open (without unnecessary duplication) help protect continuity and bargaining power. 

7. How will value be measured across the lifecycle?

Savings at contract signature are only the beginning. It is important to track the total cost of ownership, service quality, digital innovation, sustainability metrics, and the supplier’s contribution to transformation or operational excellence. Use continuous benchmarking, periodic should-cost reviews, and structured renegotiation windows to ensure ongoing alignment with evolving business priorities.

CASME’s IT Professional and Support Services SpotLight highlighted how complex and multi-dimensional outsourcing decisions have become; shaped by profound market shifts and rising stakeholder expectations. Asking (and answering) these seven questions early in the selection process, and throughout the contract period, provides procurement leaders with a structured framework to balance cost, innovation, risk, resilience, and sustainability.

CASME’s peer-to-peer community equips procurement teams with the benchmarks and best practice insights required to navigate this complexity with confidence.

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