Outsourcing doesn't work (even in the biggest companies)
As an ex-BT bod I have to say that I've never seen an outsourcing deal work properly. They will plow on regardless asking for more money for just the status quo (that was provided to them on a plate by in-house IT) and occasionally doing some Exec's private project at a huge extra cost that could be done easily and cheaply by the people the company have just pushed away.
However the article has one thing right - this is exactly how all the upper management think it will work (including the "hey - my google mail is better than our corporate email - let's change!"). Unfortunately the hidden landmines will detonate further down the road as some legacy kit falls over and no one knows how it works or why the financial systems now don't work due to that.
A 6 month outsourcing from BT ended up with them rehiring a couple of people back as contractors and using them as a low-morale library of "what do you think we should do about this?" and asking basic systems and networks questions again and again. It doesn't help that the outsourcing people get the knowledge and then leave for better jobs so the outsourcing company has to bring in more newbies.