The following blog was written by Priscilla Arling, Assistant Professor of Management Information Systems at Butler University.
Outsourcing of some IT functions continues; however, since last year’s survey, there has been little change in the extent of or type of functions outsourced. Functions outsourced are typically routine processes that while necessary to the functioning of the company, are not key components of competitive advantage. The fact that 70% of IT functions are still not outsourced suggests that executives at some level understand the contribution IT can make to achieving strategic goals and competitive advantage, and thus they are hesitant to send the development of those IT contributions outside of the firm.
