Outsourcing has the potential to reduce costs, infuse cash into an organization, increase customer satisfaction, and provide other effectiveness and efficiency improvements. Yet a hasty or incomplete evaluation of the outsourcing decision can also result in contractual battles and worsened services. IS managers who enhance their knowledge of the components of a sound outsourcing evaluation help ensure that the decision to outsource yields the former, not the latter.
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Wendell Jones (1997) studied this question.