IT outsourcing: frameworks for conceptualizing practice and perception

This paper seeks to conceptualize theory and practice of information techno logy (IT)-based outsourcing. It uses four conceptual frameworks in this res pect - core competencies, transaction cost economics, agency theory and par tnership - in an empirical comparison of IT outsourcing in the public and p rivate sectors within the UK. The qualitative research methodology involved interviews with IT managers in both sectors and documentary analysis of ou tsourcing vendors' literature. The findings suggest that practices and perc eptions of IT outsourcing found in the two sectors support the basic princi ples of some frameworks more than others, e.g. core competencies, transacti on cost economics and agency theory are well developed with partnerships le ss so. However, using all four frameworks improves understanding of multifa ceted strategic practice in fundamentally different types of organization a nd helps to expose some issues which have not emerged in previous outsourci ng studies.