On the outs. For hospitals short on resources, outsourcing can offer a viable option; for others, tasks are better handled in-house.

Industry trends show that the number of organizations that outsource all IT functions is decreasing, while the market for application hosting is growing. For organizations that are lacking IT resources, such as those that have recently split from a parent system, outsourcing can be used to build an IT department or to roll-out implementations. Many CIOs find that once the IT department is able to get a better handle on its capabilities, it can scale back on outsourcing. An outsourcing agreement has to be the right fit for both parties. If costs are climbing and needs aren't being met, a CIO's best option is often to bring IT back in-house.