ITSM Outsourcing – The Potential Pitfalls
Why outsourcing IT services so often fails to deliver what was promised
ITSM outsourcing is not a new concept, yet organisations continue to repeat the same mistakes. Despite advances in technology, delivery models, and frameworks, many outsourcing arrangements still fail to meet expectations — creating frustration, hidden cost, and operational risk rather than the benefits originally envisaged.
In this Executive Round Table, experienced service leaders and senior IT practitioners explore the real-world pitfalls of ITSM outsourcing. Drawing on decades of experience on both the client and supplier side, the discussion examines why outsourcing initiatives struggle, where assumptions break down, and what organisations consistently underestimate when entering these arrangements.
This session is designed for CIOs, Service Directors, Heads of IT, and senior leaders who are responsible for sourcing decisions and for making outsourced services work in practice — not just on paper.
Key discussion areas
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Why outsourcing rarely delivers instant improvement
The common misconception that signing a contract will resolve underlying service issues overnight. -
The underestimated complexity of service transition
How poor documentation, unclear processes, and weak readiness create long-term problems if not addressed upfront. -
Outsourcing the problem, not the solution
Why unresolved issues are often transferred rather than fixed, increasing cost and frustration over time. -
The role of the retained organisation
Why supplier management, service ownership, and integration capability are frequently underinvested. -
Cost focus versus service outcomes
How commercial models and SLA-driven contracts can misalign incentives and damage service quality. -
Moving beyond SLAs
The challenges involved in shifting from contractual metrics to experience- and outcome-led measures.
CIO takeaways
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A clearer understanding of why many ITSM outsourcing arrangements underperform
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Insight into the real effort required to transition services successfully
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Practical perspectives on building an effective retained organisation
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Awareness of the risks created by cost-driven, SLA-only contracts
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Greater confidence to challenge assumptions before and during outsourcing engagements
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Why this matters
Outsourcing decisions are often driven by cost, speed, or the desire to simplify complexity. When organisations underestimate the effort required to prepare for outsourcing — or fail to adapt their operating model — the result is frequently higher cost, reduced service quality, and strained supplier relationships.
Poorly defined roles, immature service catalogues, weak governance, and misaligned metrics all contribute to a cycle of firefighting and blame. Over time, outsourcing becomes something to manage around, rather than a strategic enabler of performance and resilience.
This discussion matters because it surfaces the realities leaders rarely hear during procurement or contract negotiation. It reframes ITSM outsourcing as a long-term operating model decision — one that requires clarity, honesty, and sustained leadership attention to succeed.