Strategic Issues in Information Technology Sourcing Patterns Perspectives An

Cover Strategic Issues in Information Technology Sourcing Patterns Perspectives An
Strategic Issues in Information Technology Sourcing Patterns Perspectives An
N Venkatraman
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, "Measure for Measure, " Computerworld, April 15, 1991.
Page 6 recently positioned its IS organization as a profit center whereby the excess capacity of the data center is being sold to outside users.
Our results suggest that firms adopting an investment-center orientation tend to have a more effective IT infrastructure (assessed in terms of technical, organizational, and business criteria). At the same time, our results show that positioning the IS organization as either a cost center or a se
...rvice center does not seem to provide the firms with any appreciable IT-related benefits.
Pattern Three: Outsourcing - Beyond Multi-Billion Dollar Deals Multi-year, multi-billion dollar deals have popularized IT outsourcing. Ehiring our research, we tracked over ten deals of half a billion dollars or more in size (Table 1). In most of these cases, the companies outsourced a significant component of their IT infrastructure, such as entire data centers (example: General Dyiiamics) or the enterprise-wide network systems (example: McDonnell Douglas).


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