IT outsourcing boosts agility at Care New England

Care New England moved nearly 160 IT staffers to IBM spinoff Kyndryl in 2023, a decision that CIO Tomas Gregorio said has made the Providence, R.I.-based system more agile.

“Outsourcing has mostly met our goals to boost efficiency, service quality, and governance,” Gregorio told Becker’s. “Despite a rough transition, Kyndryl adapted well, and we revised our governance framework to stay aligned with our strategy.”

The transition required restructuring the IT team and a more deliberate approach to oversight, Mr. Gregorio said. To ensure accountability, Care New England created an executive group responsible for monitoring Kyndryl’s performance and contract deliverables.

“This approach fostered greater accountability and provided a mechanism for continuous improvement, helping us adapt to unforeseen challenges while maintaining momentum in key operational areas,” he said.

Mr. Gregorio said outsourcing has also improved the system’s agility by strengthening change management and readiness planning. Operational leaders now play a greater role in readiness efforts, supported by governance structures and advisory councils.

“This shift has enabled faster decision-making and more effective execution of strategic initiatives, particularly in high-impact areas like Epic implementation and digital transformation,” he said.

For peers considering outsourcing, Mr. Gregorio advised early planning and strong governance.

“Develop a change management plan, involve stakeholders from the start, and communicate regularly,” he said. “Set up clear governance to maintain accountability. Understand your contract, as unexpected costs can arise and escalate quickly.”

Mr. Gregorio’s experience comes as more health systems explore IT outsourcing. In 2024, six hospitals and health systems outsourced IT functions, according to Becker’s reporting.

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