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I nformation technology outsourcing-the practice of transferring IT assets, leases, staff, and management responsibility for delivery of services from internal IT functions to third-party vendors-has become an undeniable trend ever since Kodak's 1989 landmark decision.In recent years, private and public sector organizations worldwide have outsourced significant portions of their IT functions, among them British Aerospace, British Petroleum, Canadian Post Office, Chase Manhattan Bank, Continental Airlines, Continental Bank, Enron, First City, General Dynamics, Inland Revenue, JP Morgan, Kodak, Lufthansa, McDonnell Douglas, South Australian Government, Swiss Bank, Xerox, and Commonwealth Bank of Australia.The IT outsourcing market, which was worth $76 billion in 1995, grew to over $120 billion in 1997 [5].As the market evolves, a number of important aspects of these IT outsourcing decisions have been explored.These studies can be categorized as descriptive case studies and surveys of the current outsourcing practices, surveys of practitioners' perceptions of risks IT managers commiserate over the challenges of convincing senior executives that, contrary to popular belief, outsourcing isn't always a money-saving option.
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