Had lunch with an executive from a sizable US-headquartered firm that does a huge business in IT outsourcing. He's out there doing cold-calling to try to drum up new business. He says his company goes in expecting to be able to reduce the price his customers pay year over year for their IT operations while improving service. It happens, he explained, by implementing just what you'd expect: consolidation, enhanced management processes, newer hardware and software. No great mystery to this. And he also mentioned that his firm might spend a hundred grand preparing a response to an RFP with a total value of $10,000 — if the customer were strategic enough. If you'd like to talk to him yourself, let me know at [email protected] and I'll pass along his contact information.