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Outsourcing is not a new concept. In fact, it was first mooted in 1776 as a means to cut labour costs. Two-hundred-and-thirty-one years later, outsourcing is still being mooted as a means to manage costs. Whether or not it achieves this aim and its other goals depends on a number of factors, but more on that later.

Today's CIO has a number of outsourcing options at his or her disposal. This CIO also has a concurrent number of ways and means to squeeze the maximum out of the provider for the minimum 'fair value' possible.