This successful relationship between CargoSmart and HP started back in 2001. Recalling the evaluation process, Siu noted the company was looking for providers that understand its business and IT requirements, particularly on the evolving cycle of new application releases and system/network activities.

He said a successful business application depends on how well it engages the business operation. No matter how detailed the listed user requirements during the conceptualization stage, when it gets to the actual coding stage, there are often changes or new requirements relating to other business units to be considered.

"Often the programmers have to second-guess the new requirements and the related impact to other applications," he said. "If they made wrong guesses, that's how bugs are created in the application."

If outsourcing providers do not understand the business, they could create more bugs when providing application support. "Development culture is essential in this process," he said. "If the culture encourages questioning at the development process, it is easier to bridge the gap between business and IT."

For HP, the bidding process in CargoSmart's project was not much different from other tactical outsourcing deals, which includes RFPs, proposal submissions and site visits, noted Cally Chan, country manager of managed services at HP.