As enterprises look to move from internal to outsourced IT service delivery, the cost associated with conducting a formal evaluation and making the transition to an external service provider (ESP) can be high, according to Gartner Inc. In fact, the total cost of the first step in this process, evaluation and selection of an ESP, generally ranges from 2 to 5 percent of the projected annual price of the outsourcing deal.

"While there are substantial costs involved in moving to outsourcing IT service delivery, they pale in comparison to the overall annual value of the deal," said Richard Matlus, research director for Gartner's sourcing group. "Making the investment required to get it right the first time is clearly minor compared to the risks and costs associated with a suboptimal deal."

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