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. Burgeo ning IS costs, lack of IS organization's responsiveness to users, and a renewed emphasis on return on IS investment are among some of the re asons towards this trend. Media reports are almost unanimous, and at t imes euphoric, in their claims of benefits. However, a reporting bias must be recognized: first, these reports are, at best, anecdotal accou nts and second, they are based on the accounts of outsourcing vendors, consultants, senior executives and those who remained or were promote d in the organization after the outsourcing act Naturally, these indiv iduals have a vested interest in making their decisions look beneficia l. This article discusses the various advantages and pitfalls of IS ou tsourcing, based on a dialectic view. It provides a balanced perspecti ve, as it is based on a real case discussed by two individuals who wer e 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.