Outsourcing Dilemma: The Search for Competitiveness, The

Size matters!

Ask any large client organization if it would be willing to outsource a key function to anything other than a major service provider and the answer will invariably be in the negative. There are a number of sound and obvious reasons for adopting this view but even taken together they do not prove that client and service provider should be of a similar size, or that a small service provider could not do a first class job for a much bigger organization, if the circumstances were favourable.

Most of the original IT outsourcing service providers such as EDS were already in existence as sizeable internal IT departments of major corporations. These internal departments were then re-invented as companies in their own right to take on a ...