Baloise aims to enhance IT outsourcing, targeting faster operations and cost optimization by migrating its data centers toward a hybrid cloud solution, combining private and public clouds. This ambitious journey is not without its challenges. These include the lack of standardized procedures and ensuring desired IT service quality level of their IT service provider. Achieving end-to-end automation is also a challenge, largely due to the specialized skills required, the selection and deployment of apt tools, and the inherent complexity of the transition.

This thesis combined literature review and expert interviews in its mixed-methods approach. Initially, desk research examined IT outsourcing benefits, challenges, selection criteria, and also focused on cloud computing. This was followed by semi-structured interviews with six employees of Baloise, offering real-world insights. Each interview, in which the interviewees were recommended by the client, lasted 30-60 minutes. Analyzing the interview data alongside literature findings, tailored recommendations were compiled for Baloise and other companies engaging in IT outsourcing.

The literature review highlights the benefits of IT outsourcing like cost savings, specialized expertise, and scalability, counterbalanced by challenges including data security, organizational alignment, and vendor selection. In a hybrid cloud, concerns range from security to cultural differences, emphasizing the necessity of clear roles for effective outsourcing. Expert interviews, strategically chosen, bring practical viewpoints, spotlighting industry-specific challenges and solutions. Key selection criteria like the provider's track record, references, ability to answer all questions from the customer right away, technical expertise, cultural fit and transparency stand out. Considerations such as integration of the outsourced services and defining a clear exit strategy are crucial. The value of contracts and service level agreements (SLAs) to set mutual expectations, including response time and technical support, is underlined. Recommendations focus on trust-building, cultural and organizational alignment and strong governance. Contracts should be detailed and future-oriented, with a clear grasp of framework agreements and SLAs, ensuring thorough legal and data protection.