IT Sourcing Sorcerer · 2026-01-01 · 4 min
Key moments - from our scoring
Substance score
19 / 100
Five dimensions, 20 points each
Ernie Zibert's book "What's Wrong with Outsourcing" examines why IT outsourcing deals fail to deliver expected value, drawing on survey data from over 100 IT professionals. Contrary to common assumptions, the research reveals that cost savings aren't the primary concern - only 6% cited high direct costs as the main problem. Instead, low customer satisfaction and high costs of managing outsourced providers emerge as the top issues, with 20% reporting management overhead as significant. The most striking finding: over 90% of respondents report that 60% or more of expected value is lost across an outsourcing agreement's lifetime, with a third believing nearly all value (up to 100%) erodes by the end. Zibert's central thesis is that outsourcing as a business model remains viable, but success hinges entirely on the buyer's ability to actively manage relationships and maintain strong governance. Organizations lacking clear objectives and disciplined sourcing strategies inevitably struggle with value realization. The book is essential reading for IT directors, procurement leaders, and enterprise executives responsible for outsourcing programs who want to understand why their initiatives underperform and how robust governance frameworks - such as the Sourcing Compass - can mitigate common pitfalls like paying for nothing or paying twice for the same service.
According to the survey of over 100 IT professionals in the book, low customer satisfaction is the top issue with outsourcing, followed by high costs of managing outsourced providers (cited by 20%), rather than direct cost savings concerns.
Over 90% of survey respondents reported that 60% or more of the expected value is lost across the lifetime of an outsourcing agreement, with a third of respondents believing that essentially all value (up to 100%) is lost by the end.
No; only 6% of IT professionals surveyed cited high direct costs as the main problem, indicating that cost savings alone do not capture the real challenges in outsourcing, which stem instead from service quality issues and poor governance.
The buyer must actively manage outsourcing relationships and maintain strong governance frameworks with clear objectives; without disciplined sourcing strategy and effective governance, organizations will miss out on the value outsourcing is supposed to deliver.
Our reviewer’s read on each dimension, with quotes from the episode.
The episode surfaces a handful of mildly interesting statistics from the book's survey, but they are presented as a surface-level summary with no elaboration, context, or actionable depth. The four-minute runtime is dominated by promotional content for Ernie Zibert's other works, leaving almost no room for genuine insight.
Over 90% of respondents said that 60% or more of the expected value is lost across the lifetime of an outsourcing agreement.
High costs of managing outsourced providers were cited by 20%, which is significant. Interestingly, high direct costs were not a major concern. Only 6% saw cost itself as the main problem.
The core thesis - outsourcing fails due to poor governance, not cost - is a well-worn consulting talking point that has circulated for decades. No contrarian angle, no first-principles reasoning, and no framework that challenges existing orthodoxy is offered.
the central argument is that as a business paradigm, outsourcing is here to stay, but it's up to the buyer to actively manage and extract value from those relationships
The lesson is firms need a disciplined sourcing strategy to maintain customer satisfaction and avoid value erosion.
There are no real guests; the episode is a scripted, multi-voice promotional read summarising the host's own book. No practitioner shares lived experience at scale, and the format is closer to a commercial than an interview.
This podcast is proudly brought to you by Ernie Zibit, the IT Sourcing Sorcerer, an eclectic365 consulting your trusted IT advisors.
Check out all of Ernie Zibit's works online and keep learning how to make your sourcing journey a success
A small number of survey statistics are cited with some numeric precision (20%, 6%, 90%, 60%, ~100 IT professionals, Sydney location), which gives a thin evidence base. However, there are no company names, dollar figures, timelines, or case studies, and the numbers are decontextualised.
survey data from over 100 IT professionals
a third believe that essentially all value up to 100% is lost by the end
This is not a conversation - it is a scripted promotional monologue divided across multiple voice tracks. There are zero questions, zero follow-ups, and zero moments of challenge or productive disagreement; the entire episode functions as an infomercial.
Before we go, did you know Ernie Zibbet, the IT Sourcing Sorcerer, uh, has written over 20 ebooks on IT sourcing and governance?
Thanks for listening. Until next time, keep your head in the cloud and your feet on the ground.
Computed from the transcript - who did the talking, and the words that came up most.
“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’re outsourcing, rethink your approach today. Implement strong sourcing governance frameworks and tools like the Sourcing Compass to turn things around.
Transcribed and scored by The B2B Podcast Index.
Narrator: Foreign.
Alex: Welcome to Tech Sourcing Insights, where we break down the latest trends in IT and business strategy. I'm Alex. This podcast is proudly brought to you by Ernie Zibit, the IT Sourcing Sorcerer, an eclectic365 consulting your trusted IT advisors.
Guest: Welcome to today's discussion where we'll be providing an in depth overview of the book what's Wrong with Outsourcing By Ernie Zibert. The text explores what actually goes wrong in outsourcing based on survey data from over 100 IT professionals.
Guest: This book doesn't just talk about outsourcing in theory. It gets to the concrete experiences of IT professionals on the ground, focusing on why so many companies struggle to actually realize value from their outsourcing efforts.
Guest: That's right, the central argument is that as a business paradigm, outsourcing is here to stay, but it's up to the buyer to actively manage and extract value from those relationships. Without clear objectives and strong governance organizations are likely to miss out on the value outsourcing is supposed to deliver.
Guest: The survey results really highlight this when IT professionals in Sydney were asked what goes wrong with outsourcing have pointed to low customer satisfaction as their top issue. High costs of managing outsourced providers were cited by 20%, which is significant. Interestingly, high direct costs were not a major concern. Only 6% saw cost itself as the
Guest: main problem, and that aligns with how the field has matured. There's a growing realization that cost savings alone don't capture the real challenges. Instead, dissatisfaction often stems from more nuanced issues like service quality and poor governance. Now, about the erosion of value in these deals. Over 90% of respondents said that 60% or more of the expected value is lost across the lifetime of an outsourcing agreement. Even more alarming, a third believe that essentially all value up to 100% is lost by the end. To sum up, outsourcing in itself is not inherently flawed, but the key failures boil down to ineffective management and missing governance. The lesson is firms need a disciplined sourcing strategy to maintain customer satisfaction and avoid value erosion. Ultimately, the book underscores that sustainable success with outsourcing demands ongoing attention and a robust governance framework. Thanks for joining us for this discussion.
Alex: Hi, it's Alex. Again, the takeaway Poor governance erodes value. If you're outsourcing, rethink your approach today. Implement strong sourcing governance frameworks and tools like the Sourcing Compass to turn things around and make sure you're sharp on mitigating sourcing's two evilspaying for nothing and paying twice for the same thing. Before we go, did you know Ernie Zibbet, the IT Sourcing Sorcerer, uh, has written over 20 ebooks on IT sourcing and governance?
Narrator: That's right. Titles include the Science of Sourcing Governance, Ordering IT Services. Would you like chips with that? The IT Outsourcing RFP Cow is Too Fat ams the next stage in the evolution of IT Outsourcing. Outsourcing's two evils paying for nothing and paying twice for the same thing. Apply creams to your IT Outsourcing pane, Sourcing's five Critical Governance Processes, the five Dimensions of Sourcing Value, and my favorite, Circumcising the Cloud, A CXO Guide to Cloud Cost Control, plus many more.
Alex: Check out all of Ernie Zibit's works online and keep learning how to make your sourcing journey a success and follow the It Sourcing Sorcerer.
Narrator: Thanks for listening. Until next time, keep your head in the cloud and your feet on the ground.
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Microsoft Work Trends Index 2025 Summary35 / 100
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