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Outsourcing IT: A Governance Guide by Rupert Kendrick

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Chapter 6. Pre-Contract Procedures

This chapter considers the initial stages of the process involved in outsourcing the IT function. These stages call for the development of sound management strategies and accepted management principles.

The need for sound management is essential, not least because of the complexities of outsourcing. The challenges facing the in-house IT department identified in Chapter 2 were: the need to meet competition; the emergence of specialist markets; the need for economies of scale; the overhead cost of an IT department; and compliance issues.

The decision to outsource the IT function introduces a host of business considerations which were considered in Chapter 3 under categories of strategy, technology, compliance, operations ...

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