It is common for IT Outsourcing relationships to be based around a cost per hour or per “man day” or on something akin to a time and materials relationship. These arrangements come in all shapes and sizes, to be sure, but generally the alignment of an IT Outsourcer to a business is the most like the relationship that a business has with its own internal IT department. Unlike MSPs who generally have a contractual leaning towards pushing for efficiency and cutting corners to add to profits, Outsourcers have a contractual leaning towards doing more work and having more billable hours. Understanding how each organization makes its money and where it is likely to “pad” or where cost is likely to creep is critical in managing the relationships.