Madness
If you are a small company with a few IT people, it may make sense to get economies of scale by outsourcing, but I struggle to understand why large businesses with hundreds of IT staff would outsource.
It is such a short term view - haven't they seen all the other companies that continual go through the outsoucing / insourcing cycle, plus all the failed IT projects being run by external consultancies. Not to mention the fact that from now on, IT in retail is a core function - the biggest retailer in the world is an IT company - Amazon.