IT/IS Outsourcing in Large Companies - Motivations and Risks

Abstract

Companies can outsource Information Technologies (IT) /Information Systems (IS) at various scales, from a small percentage of services to the entire range of services that they need. Outsourcing is associated to a set of motivations related to perceived benefits, but it also has inherent risks. This paper discusses the main results of a survey carried out to determine several aspects of outsourcing practice in large companies. It presents the most frequently contracted services (application development and application maintenance), the most prevailing motivations (financial motives and access to world-class capabilities) and the main risks (loss of control, loss of intellectual capital, and unexpected costs), as perceived by companies.