"We outsource our Web sites, IT infrastructure support, security, and specific applications; we find it very cost effective instead of hiring people as permanent employees."

Lynch said the IT strategic plan is reviewed every six months and outsourcing is reviewed as new projects arise, which can be as often as every month.

Peter Nikoletatos, University of Newcastle CIO, describes outsourcing as a dirty word.

He prefers to use the term "co-partner", which is what the university does when it's short on internal expertise.

Nikoletatos began outsourcing last November and is looking at forming more strategic partnerships in the longer term. But some areas need to remain in-house with the university recently appointing a security specialist following an extensive audit.