How to manage an IT outsourcing alliance

Abstract

Companies are increasingly outsourcing information technology (IT) for a variety of reasons, such as concern for cost and quality, lagging IT performance, supplier pressure, and other financial factors. The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common and the IT environment is changing rapidly. Suggestions for determining when to outsource and how to structure and manage the resulting alliance. While outsourcing is not for everyone, some very large and sophisticated organizations have successfully made the transition. What determines success or failure is managing the relationship less as a contract and more as a strategic alliance.