Although large corporations continue to outsource it services, the issues of whether and how to outsource generate strong emotions on the part of managers. Many practitioners and academics now argue for selective or "smart" sourcing. According to this author, this is probably a sensible approach to balance efficiency and effectiveness in providing IT services. However, the author argues that companies should first ask why they should not insource IT services. His perspective is based on an analysis of eleven risks of outsourcing that he identified in discussions with both buyers and vendors in the IT outsourcing marketplace.
Michael J. Earl is professor of information management and deputy principal at London Business School.
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