Advanced Outsourcing Practice: Rethinking ITO, BPO and Cloud by Mary C. Lacity

By Mary C. Lacity

A wealthy database of over 2,200 outsourcing preparations, studied throughout sectors and geographies, and through the years, from inception, via agreement signing, to results. This booklet has remarkable perception into the strong practices which were confirmed powerful time and again.

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Extra resources for Advanced Outsourcing Practice: Rethinking ITO, BPO and Cloud Services

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2011), “What Suppliers Say about Clients Part 1 – Establishing the Outsourcing Arrangement,” Cutter IT Journal, Vol. 12, 2. Reprinted with kind permission from the Cutter Consortium. Chapter 3 What Providers Say about Managing Outsourced Services. Chapter 3 is developed and updated from Lacity, M. and Willcocks, L. (2011), “What Suppliers Say about Clients Part 2 – Managing Outsourced Services,” Cutter IT Journal, Vol. 12, 3. Reprinted with kind permission from the Cutter Consortium. Chapter 4 Creating Shared Services in the Private and Public Sectors.

In addition, providers are not attracted to deals that are too small, or may not devote their best resources to service a tiny account (Lacity and Willcocks 2011). In general, too much outsourcing also was associated with lower levels of success (Currie 1998; Lacity and Willcocks 1998; Seddon 2001; Straub et al. 2008). As an example of “too much,” Lacity and Willcocks (1998) found that clients who outsourced more than 80% of their IT budgets had success rates of only 29%; clients who outsourced less than 80% of their IT budgets had success rates of 85%.

As scholars, academics are likely to be more objective than other sources of ITO and BPO research sponsored by industry consortiums or advisory firms. In the ITO and BPO domain, the 20 years (1992–2011) of academic research have generated a good understanding of practices. Overall, we have learned why firms outsource (mostly to reduce costs, access resources, and focus internal resources on more strategic work1 ), what firms outsource (mostly a portion of their overall back-office portfolios), how firms outsource (mostly by formal processes), and outsourcing outcomes as measured by realization of expectations, satisfaction, and performance (Dibbern et al.

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