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Additional resources for Outsourcing - Information Systems Outsourcing - Enduring Themes, Global Challenges, and Process OpportunitiesR Hirschheim, A Heinzl & J Dibbern - 2009 
Table 2 is a timeline providing a snapshot of the key events both prior to outsourcing and after each phase. As a result of the three phases of outsourcing and the lessons learned, Alpha today has two distinct approaches to managing their IT function. • Low-level, non-strategic work is outsourced primarily to offshore vendors • Complex and strategic systems work is managed in-house with specialist consultants. Alpha determines the architecture, selects the platform, manages the business decisions and analysis, with specialist consulting firms building and delivering the systems Reduction in costs, improved business performance and outsourcing for commercial exploitation were reasons identified in the literature for companies seeking to outsource their IT.
Three waves of information technology outsourcing. In A. Huizing & E. ), Information management: Setting the scene (pp. 175–190). Amsterdam: Elsevier. Hirschheim, R. , & Lacity, M. C. (2000). The myths and realities of information technology insourcing. Communications of the ACM, 43(2), 99–107. , & Valor, J. (2007). The implications of offshoring on the is discipline: Where perception meets reality. Communications of the Association for Information System, 20(51), 824–835. , & Hawk, S. (2004). Evolution of offshore software development: from outsourcing to co-sourcing.
The term was 10 years, with significant costs for early termination. • The outsourced scope included architecture and design functions. • Pricing was set against Alpha’s 1997 baseline, with commitments by the JV to productivity and efficiency benchmarks included. Productivity was based on Function Point counts and measured as Cost/Function Point. • Application Maintenance was fixed price against the historical baseline, with defined services, and guaranteed productivity improvements of 10–15% pa, in line with historic IT Industry experience.