Outsourcing Myths and Contracting Realities

Mary C. Lacity and Rudy Hirschheim

Chapter 6 in Information Systems and Outsourcing, 2009, pp 185-211 from Palgrave Macmillan

Abstract: Abstract This chapter is based on one of the first articles we published for practitioners (Lacity and Hirschheim, 1993). At that time, very little research had been conducted on what actually happens in client organizations when they outsourced IT. Based on 14 case studies in US organizations, the article examined three myths about outsourcing and proposed that clients need to sign much better contracts. Since its initial publication, clients and suppliers have indeed become much better at contracting. Defining services, setting prices, and creating a flexible framework to adapt to business and technical changes are now norms in ITO contracts. Although our research focus soon evolved from contractual issues to decision strategy and relationship management, it is certainly interesting to reflect back on this early contribution. It is also interesting to see how IT sourcing practices changed as the overall perception as to the role of IT changed.

Keywords: Service Level; Baseline Period; Account Manager; Residual Service; Contract Negotiation (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59483-8_6

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DOI: 10.1057/9780230594838_6

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