This is definitely a threat to all non-innovative ITO and Offshore providers. I'm pro outsourcing but I think we will see this change because of the lack of monitoring the market and customer needs. There are new roles to take: Orchestrator, Integrator, Broker etc. IT will be hybrid; someone has to co-ordinate and make it work. Either the in house IT dept. will or ITO's can try to innovate and change their role a bit.

My post 'Doomed?' address the problem: ITO lack of innovation. http://www.outsourcemagazine.co.uk/articles/item/4848-doomed-thoughts-on-trends-in-the-ito-space

@maxbuchler