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Finance for IT Decision Makers - A practical handbook by Michael Blackstaff

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10 OUTSOURCING: FINANCIAL ASPECTS

WITH HUGH PIKE BSc MBA

OBJECTIVES

When you have studied this chapter you should be able to:

  • describe what outsourcing is, with particular reference to IT, and the main reasons for considering it;
  • describe the particular financial characteristics of outsourcing and the financial implications of outsourcing decisions;
  • describe the factors that typically have to be taken into account in building a financial case for outsourcing vis-à-vis in-house provision;
  • construct a financial case for outsourcing vis-à-vis in-house provision from given data;
  • explain how financial cases for outsourcing are typically evaluated.

Outsourcing is a complex subject with strategic, operational, legal and financial implications. ...

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