The Value of Selective IT Sourcing

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Why does the outsourcing of IT frequently fail to produce the expected cost savings or other benefits? Perhaps because managers don't carefully select which IT activities to outsource. The authors examined sixty-two sourcing decisions at forty organizations through interviews with senior business executives, CIOs, consultants, and vendor account managers. From their data, they developed a set of frameworks to clarify sourcing options and aid managers in deciding which IT functions to contract out and which to retain in-house.

Mary Lacity is assistant professor of management information systems at the University of Missouri-St. Louis, and a research associate at Templeton College, University of Oxford, England. Leslie Willcocks is a fellow in information management and a university lecturer in management studies at Templeton College. David Feeny is director of The Oxford Institute of Information Management and vice president of Templeton College.

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