1) The document discusses outsourcing trends in Israel, including that cost reduction remains the primary objective for pursuing IT outsourcing. Selective outsourcing of specific processes like help desk, infrastructure, and QA/testing is more common than comprehensive outsourcing deals. 2) Companies are choosing vendors with proven abilities to deliver services according to SLAs and prefer shorter contract lengths of 3-5 years due to the highly competitive Israeli outsourcing market. 3) Measurement of outsourcing outcomes remains a challenge, and ITOs struggle to acquire and use proper productivity metrics to evaluate vendors. Professional services growth has also slowed as more management prefers in-sourcing over flexibility

1. Galit Fein Senior Analyst & VP [email_address] Sourcing Israeli Trends 2008

5. What kinds of work are you currently outsourcing or planning to outsource? Source: Cutter

6. For what reasons have you considered insourcing? Source: Cutter

23. Which IT skills are you planning to outsource? Source: Cutter

24. Thank you! Galit Fein Senior Analyst & VP [email_address]