TL;DR: This analysis reconciles some of the apparent discrepancies in past findings about the best ways to source IT, and identifies five best practices identified in the case companies.
Abstract: Following Kodak's landmark information technology (IT) outsourcing decisions in 1989, the IT outsourcing market grew to 76 billion dollars in 1995. As the outsourcing market continues to grow and as new contracting options emerge, the accumulated experiences of firms offer significant opportunities for learning. This paper builds on a previous collection of data on 61 IT sourcing decisions made in 40 U.S. and U.K. organizations during the period 1991 to 1995. This paper reanalyzed transcribed interviews from 145 participants. Using "expected cost savings achieved" as an indicator of success, five best practices were identified in the case companies. First, selective outsourcing decisions had higher success rates than total outsourcing or total insourcing decisions. Second, senior executives and IT managers who made decisions together had higher success rates than either stakeholder group acting alone. Third, organizations that invited both internal and external bids had higher success rates than organizations that merely compared external bids with current IT costs. Fourth, short-term contracts achieved higher success rates than long-term contracts. Fifth, detailed fee-for-service contracts had higher success rates than other types of fee-for-service contracts. The critical elements of three contracting models are described: fee-for-service contracts, strategic alliances/ partnerships, and buying-in of vendor resources. When the practices generated from the case studies are compared with current practices, we begin to understand which practices are proving robust and why new practices emerge. For example, in the participating companies, the rhetoric of a "partnership" was misused to describe contracts that are actually fee-for-service contracts. Today, practitioners who understand the inherent conflicts in fixed fee-for-service contracts are demanding what they perceive to be more favorable contracting options, such as flexibly priced contracts, performance-based contracts, and strategic alliances based on shared risks and rewards. This analysis reconciles some of the apparent discrepancies in past findings about the best ways to source IT.
TL;DR: The platform logic is articulate as a conceptual framework for both viewing the organizing of IT management activities as well as for framing important questions for future research.
Abstract: Prior research has generated considerable knowledge about the design of effective IT organizational architectures. Today, however, increasing signs have accumulated that this wisdom might be inadequate in shaping appropriate insights for contemporary practice. This essay seeks to direct research attention toward the following question:How should firms organize their IT activities in order to manage the imperatives of the business and technological environments in the digital economy? We articulate the platform logic as a conceptual framework for both viewing the organizing of IT management activities as well as for framing important questions for future research. In articulating this logic, we aim to shift thinking away from the traditional focus on governance structures (i.e., choice of centralized, decentralized, or federal forms) and sourcing structures (i.e., insourcing, outsourcing) and toward more complex structures that are reflective of contemporary practice. These structures are designed around important IT capabilities and network architectures.
TL;DR: As the market evolves, a number of important aspects of these IT outsourcing decisions have been explored and can be categorized as descriptive case studies and surveys of the current outsourcing practices.
Abstract: nformation technology outsourcing—the practice of transferring IT assets, leases, staff, and management responsibility for delivery of services from internal IT functions to third-party vendors—has become an undeniable trend ever since Kodak's 1989 landmark decision. In recent years, private and public sector organizations worldwide have outsourced significant portions of their IT functions,monwealth Bank of Australia. The IT outsourcing market, which was worth $76 billion in 1995, grew to over $120 billion in 1997 [5]. As the market evolves, a number of important aspects of these IT outsourcing decisions have been explored. These studies can be categorized as descriptive case studies and surveys of the current outsourcing practices, surveys of practitioners' perceptions of risks IT managers commiserate over the challenges of convincing senior executives that, contrary to popular belief, outsourcing isn't always a money-saving option.
TL;DR: The Global Sourcing Marketplace Sourcing Models: What and When to Outsource/Offshore country Attractiveness for Sourcing Supplier Core Capabilities and Strategies for Sustainability and Growth Leveraging Knowledge and Expertise Client Perspective: Vendor Selection Strategy, Retained Management Capabilities, and Legal Issue The IT Outsourcing Life Cycle and the Transition Phase Governance of Outsourcing Projects Managing Distributed Teams Emerging Issues in Sourcing Strategy as mentioned in this paper.
Abstract: Overview of the Global Sourcing Marketplace Sourcing Models: What and When to Outsource/Offshore Country Attractiveness for Sourcing Supplier Core Capabilities and Strategies for Sustainability and Growth Leveraging Knowledge and Expertise Client Perspective: Vendor Selection Strategy, Retained Management Capabilities and Legal Issue The IT Outsourcing Life Cycle and the Transition Phase Governance of Outsourcing Projects Managing Distributed Teams Emerging Issues in Sourcing Strategy
TL;DR: In this article, the authors provide answers to the question based on extremely detailed studies of six successful insourcing companies and show that the key question is not "should we outsource IS?" but "where and how can we take advantage of the rapidly developing market of IS service providers?"
Abstract: From the Publisher:
A common practice involving enormous sums of money, outsourcing is paying a third party to take control of one of a company's functions and then "sell" the service back to it. Prominent IS community members warn of the dangers in surrendering complete management control of their strategic assets. The key question is not "should we outsource IS?" but "where and how can we take advantage of the rapidly developing market of IS service providers?" This book provides answers to the question based on extremely detailed studies of six successful insourcing companies.