Lessons in global information technology sourcing

Research firms estimate the current global outsourcing market to be as high as US$500 billion, with the number of external IT outsourcing suppliers swelling into the thousands. Most notable, however, is how well customers have learned to exploit the IT services market. The author and her colleagues studied sourcing practices in 543 large and small organizations worldwide, measuring actual outcomes against expected outcomes to draw conclusions about practices associated with success and failure. The lessons from this IT sourcing research should help both customers and suppliers avoid sourcing pitfalls, allowing them to establish contracts and develop relationship management capabilities that will benefit both parties.