Mixed results have shown that offshore IT outsourcing -- all the rage for the past decade -- has over-promised and under-delivered. As our ability to calculate total cost of ownership of offshore outsourcing has advanced, CIOs are beginning to evaluate alternatives, many of which may be better bargains than previously thought.

In 2003, offshore outsourcing's main selling point was cost. It was the next frontier in cost savings and increased efficiencies in application development and infrastructure support services. Offshoring offered a grand picture of 10-20% savings on labor arbitrage, the ability to focus on core business, and access to an unlimited source of IT experts.

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