About the Authors
Acknowledgements

PART ONE - TRENDS

Chapter 1 - IT Outsourcing: Current Trends and Rationales in the UK and European Market place
Introduction
IT Outsourcing: growth and trends in the market place
· Patterns of growth
· Increasing range of IT services
· Vendors and the market place
· Outsourcing: here to stay
Reasons for IT Outsourcing
1. Financial reasons
2. Business and organizational change
3. Focus strategy
4. Technical advantages
5. Other literature on the reasons for outsourcing
Value-Added Outsourcing: an emergent rationale
The Advantages of Outsourcing
Emerging Disadvantages and Dangers of Outsourcing
The Sourcing of IT: an Overview
· Definitions of IT outsourcing
· Types of IT sourcing decision
· Scale of IT sourcing decisions and client/supplier interdependency
Conclusions and Learning Points

Chapter 2 - IT Outsourcing in the US: Experiences, Trends and Lessons
Introduction
Experiences So Far: an Overview
· Selective sourcing: tried and tested
· Transitional outsourcing: 'building a new world'
· Total outsourcing: 'no longer a game for losers?'
Current and Future Trends in IT Outsourcing
· Value-added outsourcing
· Equity holdings
· Multi-sourcing: one contract, multiple suppliers
· Co-sourcing: performance-based contracts
· Spin-offs
· Creative contracting, tougher shoppers
Conclusions from Reviewing US Research: six critical lessons

Chapter 3 - A Survey of IT Outsourcing Practices and Lessons
Introduction
The Sample and Research Base
IT Outsourcing Strategy
· Outsourcing IT: size and scope
· Number of outsourcing vendors
· Outsourcing and IT spend
· IT as a strategic or service/support activity
· Who initiates outsourcing proposals?
The Cost and Benefits of Outsourcing
· Emerging levels of benefit
· Costs: increased or reduced?
· Types of benefit
Legal Aspects of Contracting
Success and Failure Factors in IT Outsourcing
· Success factors
· Failure factors
Key Issues and Problems before Outsourcing
· Strategic issues
· Identifying costs
· Management issues
· Operational issues
· Legal and contractual issues
· Technical issues
Key Issues and Problems during IT Outsourcing
· Strategic issues
· Cost issues
· Managerial issues
· Operational issues
· Main contractual and legal issues
· Technical issues
Experiences with Vendors
· Problems experienced
· Cancellation, renewal and new contracts
· Assessment of vendor performance
Human Resource Issues In IT Outsourcing
· Reductions in IT staff numbers
· Problems experienced
· Skills shortages
Learning from Experience
Conclusions

Part Two - Issues and Best Practices

Chapter 4- Developing an IT Sourcing Strategy: Business, Technical and Economic Decisions
Introduction
Outsourcing: the Need for Strategy
Outsourcing Experiences
The Distinctive Features of IT Sourcing
Clarifying The Sourcing Options
Making Strategic Decisions: the major factors
Making Sourcing Decisions: the business factors
Making Sourcing Decisions: the technical factors
Making Sourcing Decisions: the economic factors
The Strategic Sourcing Decision: dealing with trade-offs
· When to stay in-house
· IT outsourcing: the "best case" scenario
· IT outsourcing: dealing with 'mixed case' scenarios
· The 'total outsourcing' decision
Developing the Decision: a Reality Check
· One more time: does it make economic sense?
· Uncertainties about future business environment and needs
· The rate of technological change
· People and ownership of assets
· Availability and suitability of vendor
· Management capacity to deliver on the decision
· Human resource issues
Conclusions

Chapter 5 - Managing Large-Scale IT Outsourcing Contracts
Introduction
Managing Large-Scale IT Outsourcing Contracts: Context
Managing Human Resource Issues in Large-Scale Contracts
Case Study: IT Outsourcing at the UK Inland Revenue
· Context and overview
· Early days: -
· Emerging issues: -
· The self assessment tax project
· Case analysis and learning points
· Summary
Case Study: IT Outsourcing At British Aerospace Plc
· Context and overview
· Reviewing IT performance: -
· Building up to the contract: January -March
· Subsequent issues: -
· Case learning points
Case Study: The London Stock Exchange
· Context and overview
· The move to external sourcing of IT
· Developments, issues and learning points: -
· Summary and learning points
Conclusions

Chapter 6 - Managing Multiple Suppliers: the Key Issues and Concerns of Client Organizations
Introduction
Supplier Selection and Contracting
Case Study: ICI
· Context and overview
· A period of restructuring: 1980- 90
· The 1990's: the corporate IT service is questioned
· Selective and competitive outsourcing
· Selecting the suppliers
· An alternative supplier selection strategy
· Evaluating outsourcing: the ICI client perspective
· Learning points
Case Study: Wessex Water Plc
· Context and overview
· Selective IT sourcing
· Focusing on the core business
· Managing the supplier
· Four outsourcing contracts: learning how to manage the 'gaps'
· Placing a value on intellectual resources
· Developing new capabilities and skills
· Retaining IT strategy and planning
· The future of IT outsourcing
· Summary points
Case Study: BP Exploration
· Context and overview
· The changing role of IT
· The IT cost management phase: -
· Moving to multiple alliances
· Managing multiple vendors
· Retained skills
· Emerging issues
· Summary and learning points
· Conclusions: Lessons on Managing Multiple Outsourcing Suppliers

Chapter 7- The Value of the Insourcing Option
Introduction
Changes in the IT Labour Market
The IT Skills Shortage
Growth In the IT Contracting Market
The Value of the Insourcing Option
Developing IT Capabilities and Skills
Case Study: Eagle Star Insurance Ltd
· Context and Overview
· Towards new computer systems
· Insourcing and outsourcing: achieving a balanced approach
· Risks in using a small supplier
· Developing the computer system: the IPAS experience
· Adopting a 'buyer-beware' approach to outsourcing
· Insourcing technical skills to meet project deadlines
· Summary points
Case Study: CREST Co Ltd
· Context and overview
· A joint venture approach to systems development
· From development to implementation: the acid test of the CREST system
· Summary points
Conclusions

Chapter 8 - IT Outsourcing in Public Sector Contexts: Taking And Managing The Privatization Option
Introduction: the UK Public Sector
Privatization of IT Services in UK Central Government
The client/contractor split
CCT of IT services in local government
A conceptual framework for understanding IT outsourcing in the UK public sector
Case Study: Hertfordshire County Council
· Context and overview
· A selective approach to IT outsourcing
· Problems in predicting technological change
· The need for flexibility
· Proactive or reactive suppliers?
· Making IT a business function
· Dis-benefits from IT outsourcing
· Co-ordination of services
· One more time: new IT skills and structure needed
· Summary
Case Study: The Post Office
· Context and overview
· The changing nature of the IT department
· Business drivers for outsourcing
· Core competencies
· Access to world-class expertise
· Summary points
IT Outsourcing in the US Federal Sector: Overview
Case Study: The US Internal Revenue Service
· Context and overview
· Project management of in-house systems development
· Managing outsourcing contracts
· Other IT issues
· Summary points
Conclusions

Chapter 9- Key Capabilities And Skills For The Emerging In-house IT Function
Introduction
· Structure
· Aligning business and IS/IT strategies
· Culture gap
· Why capabilities and skills?
The Emergent IT Function
· The research base
· The emerging mode
Nine Capabilities For The IT Function
1. IS/IT governance
2. Business systems thinking
3. Relationship building
4. Designing technical architecture
5. Making technology work
6. Informed buying
7. Contract facilitation
8. Contract monitoring
9. Vendor development
Capabilities, High Performance and Skills
· What happens when capabilities are missing?
· The importance of in-house technical capability
· Requisite skills
Human Resource and Organizational Challenges
· Human resource challenges
· Organizational issues
Sourcing IT/IS: The Core-Periphery Model Revisited
Conclusions

References

Further Reading

Index