Looks like sanity may finally be prevailing.
Unless the service is extremely specialised outsourcing will never be good value. Outsourcers provide minimum service they can get away with at the maximum price they can screw the customer for, they need to benefit their shareholders. A properly governed internal service provides best value for the available resources. Anyone who outsources needs to explain to their shareholders why the service is so specialised or why they do not have the capability of managing their IT departments.