Information systems (IS) backsourcing is a trade practice in which a firm takes back in house assets, activities, and skills that are an element of its information systems operation that were formerly outsourced to one or more external IS suppliers. Backsourcing frequently signifies a response to new opportunities generated by internal or environmental changes in the business situation as well as to the problems with the outsourcing arrangement.
The difficulties are obvious in increasing costs, poor service quality, loss of control over outsourced actions, and a know-how disparity on the part of the supplier. Opportunity appear from internal organizational changes like redefinition of environmental changes such as mergers, acquisitions, and divestitures in addition to the function of IS and new executives. This post provides insights into reasons for backsourcing, possible responses to the problems and opportunities related to it, and offers suggestions for managing a smooth transition to in-house operations.
PUBLICATION DATE: November 01, 2008 PRODUCT #: CMR410-HCB-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
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