"But infrastructure is not so easily outsourced and is essential to our business strategy; but wherever someone else can do better, let them," he said. Outsourcing is definitely on the agenda for Box Hill Institute of TAFE IT manager Chris Tayler.

He is currently undertaking a review and cost analysis to identify areas ripe for outsourcing in the next six months.

"We don't have the resources to do every project, so we will probably outsource mostly in the area of software development, due to a lack of internal resourcing," Tayler said adding that security is another area suited to outsourcing.

New Zealand Natural has just completed a migration from Lotus Notes to Microsoft Exchange, which was outsourced. The company will also outsource its planned upgrade to Window's Vista. Michael Carter, NZ Natural's IT administrator, said he relies on outsourcers for their expertise.

Geoff Lynch, the IT manager at Countrywide Food Service said, "We outsource so we don't have to hire experts.