IT Outsourcing

IT Outsourcing

P. Gottschalk (Norwegian School of Management, Norway)
Copyright: © 2006 |Pages: 22
DOI: 10.4018/978-1-59140-760-7.ch001
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Abstract

Given the potential headaches of managing IT, it is tempting to hand the job over to someone else. Indeed, outsourcing once appeared to be a simple solution to management frustrations, and senior management teams at many companies negotiated contracts with large service providers to run their entire IT functions. At a minimum, these providers were often able to provide IT capabilities for a lower cost and with fewer hassles than the companies had been able to themselves. But many of these outsourcing arrangements resulted in dissatisfaction, particularly as a company’s business needs changed. Service providers, with their standard offerings and detailed contracts, provided IT capabilities that were not flexible enough to meet changing requirements, and they often seemed slow to respond to problems. Furthermore, a relationship with a supplier often required substantial investments of money and time, which entrenched that supplier in the company’s strategic planning and business processes. The company then became particularly vulnerable if the supplier failed to meet its contractual obligations (Ross & Weill, 2002).

Complete Chapter List

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Chapter 1
IT Outsourcing  (pages 6-27)
P. Gottschalk
Given the potential headaches of managing IT, it is tempting to hand the job over to someone else. Indeed, outsourcing once appeared to be a simple... Sample PDF
IT Outsourcing
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Chapter 2
P. Gottschalk
In this chapter, we cover some topics that contribute to a broader understanding of the role of IT outsourcing. We start by presenting value... Sample PDF
Some Fundamental Perspectives
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Chapter 3
IT Outsourcing Theories  (pages 71-126)
P. Gottschalk
Based on outsourcing definitions explored in Chapter II, we can identify taxonomies, or schools of IT outsourcing. The primary purpose of this... Sample PDF
IT Outsourcing Theories
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Chapter 4
Enter Strategy  (pages 127-154)
P. Gottschalk
Why does the outsourcing of IT frequently fail to produce the expected cost savings and other benefits? Lacity, Willcocks, and Feeny (1996) pose... Sample PDF
Enter Strategy
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Chapter 5
Phases and Activities  (pages 155-167)
P. Gottschalk
Lacity and Willcocks (2000a) identified six outsourcing phases. In these phases, a variety of stakeholders are involved, such as customer senior... Sample PDF
Phases and Activities
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Chapter 6
Contract Development  (pages 168-183)
P. Gottschalk
According to Graham (2003), one of the games lawyers play in negotiation meetings relating to outsourcing is to bet how long it will be until one... Sample PDF
Contract Development
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Chapter 7
Personnel Issues  (pages 184-204)
P. Gottschalk
Many of the potential problems with outsourcing can be avoided by carefully deciding which IT services can appropriately be contracted out and which... Sample PDF
Personnel Issues
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Chapter 8
Governance Structures  (pages 205-238)
P. Gottschalk
The overall objective of this chapter is to concentrate on the important issues of strategy, structure, and management of IT outsourcing... Sample PDF
Governance Structures
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Chapter 9
P. Gottschalk
A dominant explanation for companies outsourcing IT is costs. In this chapter, we discuss production and transaction economics, hidden costs and... Sample PDF
Costs, Benefits, and Risks
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Chapter 10
Knowledge Management  (pages 254-270)
P. Gottschalk
In an outsourcing relationship, the vendor and its clients need to transfer knowledge on a continuous basis. Relevant approaches to outsourcing... Sample PDF
Knowledge Management
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Chapter 11
Exit Strategy  (pages 271-282)
P. Gottschalk
Outsourcing contracts do not last forever. And sooner or later, the client has to think of “where to go by the end of this contract?” and “how to... Sample PDF
Exit Strategy
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