IT Sourcing: Examining the Privatization Option in Public Administration

Mary Lacity and Leslie Willcocks

Chapter 7 in The Practice of Outsourcing, 2009, pp 159-186 from Palgrave Macmillan

Abstract: Abstract In this chapter the process and content of decision making on sourcing information technology (IT) in two case histories from the United States public sector are examined in detail. We find that outsourcing IT problems, as opposed to tasks, rarely works in either private or public sectors. The findings suggest that both sectors must develop similar IT competencies before considering sourcing decisions. These include fostering relationships with senior management, benchmarking performance, creating shared IT objectives, understanding requirements, diagnosing IT problems, evaluating in-house versus market capabilities, and, in the case of outsourcing, developing competencies in contract negotiation and post-contract management. The major difference between public and private sector sourcing was found to be that public sector agencies faced more environmental constraints, including dictated budgets and requirements, and restrictions on civil servant salaries (see Chapter 6 for a discussion of distinctive public sector contexts).

Keywords: Information Technology; Public Sector; Internal Revenue Service; County Administrator; System Development Project (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-24084-1_7

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DOI: 10.1057/9780230240841_7

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