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Management article
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Reference no. SMR3731
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 1996
Length: 15 pages

Abstract

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.

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Abstract

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.

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