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The next step for the CEO Moving IT‐enabled services outsourcing to the strategic agenda

The next step for the CEO Moving IT‐enabled services outsourcing to the strategic agenda Purpose – This paper aims to distill research findings that will influence CEO and top team behaviour. Design/methodology/approach – The findings are based on case study research into 650 plus organisations and their outsourcing arrangements in Europe, Asia Pacific and USA. Findings – CEOs have five reasons for ensuring IT‐based services outsourcing is included in their strategy discussions. IT outsourcing impacts upon a firm's market value. The sheer size of outsourcing expenditure merits senior management attention. Getting outsourcing wrong can seriously damage corporate health. At the same time, the evidence shows examples of outsourcing playing a strategic role for many businesses, and only the CEO has the real bargaining power to make outsourcing deliver this strategic dividend. Research limitations/implications – The research was carried out by the LSE's Outsourcing Unit and uses in‐depth longitudinal case studies to identify outsourcing practices that work, in terms of achieving superior business results. Practical implications – The paper spells out the reasons why CEO and top teams should be engaged in their outsourcing decision making and management. Originality/value – The paper establishes well researched grounds for why CEOs and top teams need to act differently if more effective outsourcing is to be achieved. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Outsourcing: An International Journal Emerald Publishing

The next step for the CEO Moving IT‐enabled services outsourcing to the strategic agenda

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Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-8297
DOI
10.1108/17538291011023089
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to distill research findings that will influence CEO and top team behaviour. Design/methodology/approach – The findings are based on case study research into 650 plus organisations and their outsourcing arrangements in Europe, Asia Pacific and USA. Findings – CEOs have five reasons for ensuring IT‐based services outsourcing is included in their strategy discussions. IT outsourcing impacts upon a firm's market value. The sheer size of outsourcing expenditure merits senior management attention. Getting outsourcing wrong can seriously damage corporate health. At the same time, the evidence shows examples of outsourcing playing a strategic role for many businesses, and only the CEO has the real bargaining power to make outsourcing deliver this strategic dividend. Research limitations/implications – The research was carried out by the LSE's Outsourcing Unit and uses in‐depth longitudinal case studies to identify outsourcing practices that work, in terms of achieving superior business results. Practical implications – The paper spells out the reasons why CEO and top teams should be engaged in their outsourcing decision making and management. Originality/value – The paper establishes well researched grounds for why CEOs and top teams need to act differently if more effective outsourcing is to be achieved.

Journal

Strategic Outsourcing: An International JournalEmerald Publishing

Published: Feb 23, 2010

Keywords: Outsourcing; Competitive advantage; Communication technologies; Chief executives; Strategic choices

References