Information Technology Outsourcing: Conceptualizing Practice in the Public and Private Sector

This paper employs four conceptual frameworks to assess IT outsourcing arrangements, i.e. core competencies, agency theory, transaction cost economics and partnerships. The frameworks are related to an empirical comparison of the public and private sectors within the United Kingdom, utilizing data from thirteen interviews conducted with IT managers from both sectors. The study suggest that each theoretical approach has its own relative merits in helping organizations to understand strategic practice, particularly in consideration of some aspects not usually addressed in outsourcing studies. Conclusions are drawn to determine the wider benefits of the frameworks’ towards more successful IT outsourcing decision making.