It is difficult to imagine a firm today that does not rely on Information Technology (IT) to some degree to provide services or deliver products to market. Computers, telephones, fax machines, copiers, pagers, and other IT-related devices have become indispensible tools of the trade -- the modern hammer and anvil.

Yet, the time, financial, and human resources needed to acquire, deploy, support and replace technology investments are increasing exponentially. Businesses quickly learn that if these investments are not planned, managed, and leveraged properly, the enterprise will not succeed.

Increased competition for market share, better informed and more demanding customers, tighter margins and shorter product life cycles have caused businesses to examine where there may be opportunities to focus better on core competencies, reduce risk and costs, and become more agile and competitive to survive.

For many companies including such large organizations as Boeing, Eastman Kodak, Taco Bell, and Xerox, and small businesses in every industry, IT outsourcing is part of the answer.

This year, IT outsourcing expenditures in the U.S. are expected to top $50 billion, up from $40 billion in 1996. In fact, since 1989, dollars spent on IT outsourcing have grown at a staggering 25% annually. By the year 2000, the U.S. Commerce Department predicts $100 billion spent annually, and by 2003, $150 billion.

Levels of outsourcing run the gamut from small, discreet projects to having entire IT functions, including all necessary capital and labor, provided by an outside source. Regardless, there are a number of key benefits to be realized:

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