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ID number:957116
Evaluation:
Published: 12.07.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Conclusion
Outsourcing should not be viewed as a solution in resolving problem service areas within the organisations. If an internal service area is not performing effectively and by transferring it to an external contractor could only magnify the problem. Therefore, it is important that an organisation that undertakes outsourcing must be able to clearly identify its long term IT strategic directions and long term information needs. The IT manager is the prime candidate to fulfill this role . Once the organisations have understood and addressed its long term IT strategic directions, it can then go on to decide which IT service areas should be outsourced. Organisations undertake outsourcing of their IT service areas should do so based on the basis of costs and benefits analysis and it is justified on cost effectiveness and must be based on sound business decision.

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