Minimising risks in IT outsourcing: Choosing target services

Abstract

This paper provides a risk-based framework for deciding on which IT services to outsource and which to keep in-house.This framework considers the probabilities both of negative outcomes, and of failing to achieve positive outcomes.The authors examine the major components of outsourcing risk and their drivers, and from this derive a series of questions decision-makers can ask when deciding what sourcing options to adopt for different services.The framework was developed on the basis of five years of qualitative and quantitative research into the experiences of organizations involved in outsourcing IT.

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