Outsourcing of IT has been around in different shapes for more then three decades. During this period the outsourcing drivers have been strongly influenced by the evolution of information technology. Gartner Analysts have been discussing continuously with our large client base in order to identify best practices in (out)sourcing. In the presentation a number of fatal errors that we encounter in our practice is discussed with the attendants. Based on market input around best practices, Gartner has developed a full-blown lifecycle methodology that enables Gartner clients to craft a successful outsourcing deal. Components of this methodology are shared with the audience during the presentation. Independent Gartner Consultants assist clients around the world with the definition of sourcing strategy, selection and evaluation of service providers and negotiating and closing sourcing contracts. In existing deals, Gartner is often called in to evaluate the relationship, mainly in situations when trust levels between both parties have deteriorated. Development of an outsourcing deal is much more about establishing and maintaining a relationship, then about purchasing products or services. Nevertheless, this is one of the key reasons for failure of outsourcing deals. The Gartner Relationship Scorecard is a practical tool to help our clients in securing the appropriate level of balance in an outsourcing relationship. Gartner’s key advice is to work according to a proven life-cycle approach. Both prior and after signing a deal, service recipients should be clearly in charge of the process and relationship. Therefore, sufficient and appropriate capabilities should be available in house. This will also allow company’s to manage risk.