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Technology and Innovation
How to Manage an IT Outsourcing Alliance
By F. Warren McFarlan and Richard L. Nolan
Winter 1995
Reprint 3621
Volume 36, Number 2, pages 9-23, 15 pages
Primary Topic: Technology and Innovation

Summary

Companies are increasingly outsourcing information technology for a variety of reasons, such as concern for cost and quality, lagging IT performance, supplier pressure, and other financial factors. The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common and the IT environment is changing rapidly. The authors offer their suggestions for determining when to outsource and how to structure and manage the resulting alliance. Most important, they suggest, is to view the outsourcing agreement as a strategic alliance and manage it as such.

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