What?

The first question to be answered is, What is outsourcing? “Outsourcing is the use of external agents to perform activities that were previously performed within the organization” (King 2001). Classic examples include electrical component manufacturing and perhaps the earliest form of information processing outsourcing—payroll processing.

For the IT organization, there are two kinds of outsourcing: IT outsourcing and business process outsourcing (Kobitzsch 2001). By IT outsourcing, we mean outsourcing the development of relatively large software development projects. For example, hiring a few consultants to serve as internal members of the IT organization is not really IT outsourcing.

Business process outsourcing, on the other hand, can ...

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