IMPACT OF ORGANIZATIONAL AND CONTRACT FLEXIBILITY ON OUTSOURCING CONTRACTS

The use of outsourcing continues to grow as a strategy in organization s. Organizations use outsourcing to lower costs and sharpen focus by s pecializing in the core tasks. This study proposes that firms need to consider both their internal organizational stability and contract fle xibility when developing outsourcing contracts in the information syst ems/technology (IS/IT) areas. Addressing these important factors can a ssist in obtaining improved satisfaction and better service with the o utsourcing project. (C) 1998 Elsevier Science Inc.