OUTSOURCING

This final part of the chapter considers one of the most important alignment issues for an organisation from both a business and an IT perspective. Outsourcing occurs where certain capabilities needed by the organisation to meet its business goals are subcontracted to other organisations. These may be business or IT capabilities. One of the initial drivers was to outsource functions that were seen as non-critical and that could be performed more cheaply or better by a specialist provider. The payroll of an organisation is a prime example of a business function that many organisations subcontract to a third party. Key reasons are that the third party specialises in the tax changes and there is no competitive impact from outsourcing ...

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