OK here is a provocative comment.

IT outsourcing is the fault of the existing IT departments.  Failure to communicate and integrate with their businesses has lead to them being viewed as an interchangeable resource rather than an integrated part of their business.

Proof of this is that outsourcing is seen  as delivering a predominant benefit  of costs.

It is a sad comment that senior management believe that a bunch of outsiders can deliver something just as well as people who allegedly have an intimate knowledge of the business.  It would be tragic if they were to be prooved correct.