[precisionshootist]

"The key term is "Managed Services". Some company (can be an old, well known one) approaches a high-management person or persons with an incredible deal to reduce costs by using his company to "manage the IT services" for their company. "

I agree. This is outsourcing in a nutshell. This concept is rarely the right approach yet is has become the norm in corp America.

Think about it in simple terms. "Managed Services", "Outsourcing" is always sold on the basis of cost. Now think about this. Pretend your home is a corporation. Is it cheaper for you to mow the lawn yourself or to "outsource" it to someone else? Which is likely to produce the high quality outcome?

[flamberge]

"Outsourcing" is always sold on the basis of cost.

This is merely a rationalization for outsourcing. The real reason in most cases is that management does not know how to run an operation and is sick of dealing with it. In many situations, the executives will gladly pay premiums to unload a troublesome department or division.

Things rarely work out well for the staff in such conditions. They often do not work out well for the company either. The executives generally do not care. They will be promoted or retired before the effects of their decisions are manifested.

Leaving problems for successors to deal with is a time-honored strategy at all levels in an organization.