Financial
• Avoidance of heavy capital investment, thereby releasing funds for other uses
• Improved cash flow and cost accountability
• Improved cost benefits from economies of scale and from sharing hardware, software,
and personnel
• Less need for expensive office space
Technical
• Access to new information technologies
• Ability to achieve technological improvements more easily
• Faster application development and placement of IT apps into service
Management
• Concentration on developing and running core business activity; improved company
focus
• Delegation of IT development (design, production, and acquisition) and operational
responsibility to suppliers
• Elimination of need to recruit and retain competent IT staff
• Reduced risk of bad software
Human Resources
• Opportunity to draw on specialist skills available from a pool of expertise, when
needed
• Enriched career development and opportunities for remaining staff
Quality
• Clearly defined service levels
• Improved performance accountability
Flexibility
• Quick response to business demands (agility)
• Ability to handle IT peaks and valleys more effectively (flexibility)