A dialectic view of information systems outsourcing: Pros and cons

In recent years, information systems (IS) outsourcing is increasing in business organizations as a way to govern their IS operations. Burgeoning IS costs, lack of IS organization's responsiveness to users, and a renewed emphasis on return on IS investment are among some of the reasons towards this trend. Media reports are almost unanimous, and at times euphoric, in their claims of benefits. However, a reporting bias must be recognized: first, these reports are, at best, anecdotal accounts and second, they are based on the accounts of outsourcing vendors, consultants, senior executives and those who remained or were promoted in the organization after the outsourcing act. Naturally, these individuals have a vested interest in making their decisions look beneficial. This article discusses the various advantages and pitfalls of IS outsourcing, based on a dialectic view. It provides a balanced perspective, as it is based on a real case discussed by two individuals who were on opposing sides of the fence: one was an outsourcing survivor and was promoted, and the other was terminated due to decisions related to outsourcing.