An organization is planning an IT acquisition strategy for a

An organization is planning an IT acquisition strategy for a large and complex project. It plans to outsource part of the solution implementation to an IT services contractor. Prior to preparing a request for proposals, it must decide which solution implementation activities should be performed by in-house staff and which should be performed by the IT service contractor. Your Question/Task: What guidelines would you recommend for making the decisions regarding which solution implementation activities should be performed by in-house staff and which should be performed by the IT service contractor?

Solution

Services Outsourcing can have significant impact on company budgets. On one hand, it can reduce cost by bringing fresh expertise for your business and help in growth of business through Innovation while on other hand, it can add cost to the business unnecessarily outsourcing activities which can be performed in-house. The best solution is formulation of Outsourcing Decision matrix which includes common factors to be considered before outsourcing a task. It is divided into four quadrats and decision needs to be taken on these quadrants like-