“90% of Outsourcing Deals Lose Over Half Their Value—Here’s Why”

According to Ernie Zibert’s research, the problem isn’t outsourcing itself—it’s how we manage it.

📊 A survey of 100+ IT professionals revealed:

• 50% cite low customer satisfaction as the biggest issue
• 90% believe 60% or more of expected value is lost over the lifetime of an outsourcing deal
• Shockingly, 1 in 3 say 100% of value disappears,

The takeaway? Poor governance erodes value. If you’reoutsourcing, rethink your approach today. Implement strong sourcing governance frameworks and tools like the Sourcing Compass to turn things around.

What’s the real difference between a $1 Million and a $1 Billion IT sourcing deal?

Surprisingly… almost nothing.

Whether you’re negotiating a small agreement or a mega-deal, the fundamentals remain the same:

✅ Contract clarity
✅Performance accountability (SLAs)
✅Transparent invoicing
✅Demand management
✅Relationship governance

Scale adds complexity—but the playbook doesn’t change.

If you’re a CIO, vCIO, VMO manager, or sourcing leader, focus on these five pillars and you’ll win—regardless of deal size. Enjoy the listen.

Are you still measuring outsourcing success by cost alone?
That’s a trap many organizations fall into—and it leads to missed opportunities, unhappy customers, and stalled innovation.

In my latest piece, I break down the Five Dimensions of Sourcing Value—a practical model that helps you:
✔ Reduce value leakage
✔ Align sourcing with strategic priorities
✔ Balance trade-offs between cost, flexibility, andcustomer satisfaction

Key takeaway: Outsourcing isn’t just about saving money. It’s about knowing where your Sourcing Value Compass points—and why.