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Key Findings • Outsourcing and services will increase. There is an increased level of interest within midsize businesses and across a balanced share of vertical markets toward extending their externally sourced activities in 2009. • More business managers than IT managers appear to be involved in service sourcing decision making. • Outsourcing growth has slowed, but is still there. Almost 60% of surveyed organizations have indicated that they will outsource more, versus 7% that indicated they will outsource less. • Evergreen objectives and challenges dominate the plans. Client organizations are predominantly looking for cost reduction, seeking access to resources, aligning IT to the business needs and getting more value from existing investments. • Interest in and use of services based on alternative delivery models are on the rise. Europe is becoming a sweet spot for these new offerings through 2009 and 2010. Recommendation • Consolidation of traditional providers, the rise of new and industrialized offerings, and increasing price pressures are affecting everyone. Careful strategy development, superior execution operational control and quality assurance and a strong understanding of the current market reality are required. Despite the traditional, although more intense, requirements for prompt cost optimization, better business alignment and more value for money, IT and business managers will be required to apply more-diligent approaches to developing sourcing strategies and management capabilities. Midsize companies and business managers also need to address these issues.