ITIL and MOF are frameworks that give references on how to design, organize and run an organization efficiently through process orientation - i.e. first designing good processes, then designing the IT systems that enable these processes to work, and then implementing them.
ITIL (i.e. the IT Infrastructure Library >
http://www.itsmf.org/) is a framework that details a "best practice" based and thoroughly coherent approach to IT service management. ITIL provides a cohesive set of best practice processes, drawn from the public and private sectors internationally. There is a comprehensive certifications scheme, handled by independent training organisations, as well as implementation and assessment tools. MOF is Microsofts take on ITIL, which is not as good as ITIL because ITIL evolves constantly - but integrates beautifully with off-shelf Microsoft solutions.
A good starting point is breaking down the barrier between the IT department and the rest of the business. IT people often seem to think they are importent in their own right, whereas from a process viewpoint they are just the janitors that keep up the flow of resources through the organization. IT systems are increasingly common, to the point where only the most specialized guys maintain a value that can justify paying them "IT salaries".
As for the whole outsourcing and offshoring things; we develop the specification and have the system developed. Then we do intricate testing to ensure we get what we designed. In our experinece, the quality delivered by "our" freelancers is very good, matching that delivered by domestic specialists. It is usually massive improvement over the performance of in-house programmers, which we sometimes have to work with. Overall, I tend to recommend hiering the best qualified developer with the best track reccord, and then pay less attention to wether he's in-hose or a freelancer out of Belarus or Poland.
CSC is a huge company that does, among other things, outsourcing. I worked for them for a while, but it's methodology is too big and slow for my liking. CSC only wants the biggest contracts - I enjoy working for companies with 50 - 500 employees more.