One of the greatest challenges facing companies embarking on outsourcing is ensuring that their contracts are, and remain, value for money.

Outsourcing contracts often incorporate an initial cost “reduction”, set against the expense of running services in house, of between 10 and 15 per cent; in some cases, clients are able to make greater savings. But the competitive nature of the IT industry and the dynamics of Moore’s Law means that the true cost of IT can fall by far more over the lifetime of a long-term contract.