Managing IT Outsourcing: Governance in Global Partnerships

Citation

Coen, M. (2007), "Managing IT Outsourcing: Governance in Global Partnerships", Library Review, Vol. 56 No. 6, pp. 506-508. https://doi.org/10.1108/00242530710760418

Enthusiasm for outsourcing elements of corporate information systems (IS) has waxed and waned since the concept first emerged more than 20 years ago. This book by two professors from Tilburg University in the Netherlands and a senior manager from Accenture, a global management and outsourcing company, explores the factors that affect the success of outsourcing agreements and, in particular, the governance of those arrangements.

The initial chapters provide a useful summary of the historical development of outsourcing, a description of the different forms it may take and the potential pros and cons of outsourcing non‐core functions. The main body of the book then focuses on the latest approach to outsourcing, where long‐term, strategic relationships are developed between the service supplier and the recipient organization, with the contract between the two encapsulating a joint vision and a shared set of objectives.

In a series of detailed chapters the authors consider the factors that affect the governance of outsourcing agreements from the perspectives of both the recipient and the provider, before examining the development of a relationship between the two. The book concludes with chapters on the development of offshore outsourcing, the formulation of contracts and the issues which may affect the future of outsourcing, such as open‐source software.

The governance of information systems within organizations, and its relationship to corporate governance, is becoming increasingly important within most organizations driven, in no small measure, by the growing body of legislation affecting the use of corporate information. Consequently, this exploration of outsourcing from a governance perspective is both timely and relevant.

The book is aimed at a diverse readership – practitioners, academics and students – and with admirable conciseness provides something for everyone. Each chapter is thoroughly referenced, and the book is peppered with quotes and examples to illustrate the main points. The book also contains a handful of detailed case studies together with lecturers’ notes that could, with some contextualisation, be used in student learning exercises.

As with much of the literature on IT governance the focus is on commercial organizations, with only two of the 31 case studies cited by the authors appearing to originate in the not‐for‐profit sector. That said, most of the issues explored in the book are of equal relevance to public sector organizations, although some of the business terminology may require translation. The authors have also taken care to ensure the international relevance of the text by drawing on a wide range of international case studies and incorporating an examination of the differences in legislation and culture that might affect outsourcing arrangements within and between countries worldwide.

The authors do not suggest that there is a single correct methodology or model for outsourcing but instead explore the factors that can potentially affect the success of an outsourcing agreement. Importantly they recognise these factors include not only the “hard”, factual issues enshrined in the contractual agreement but also “softer” issues such as trust, and the book contains cogent advice on how this can be fostered as part of an outsourcing arrangement. The book also gives due consideration to the type of “real‐world” issues, such as unforeseen changes in technology, business requirements or operating environment, that often scupper outsourcing agreements. Advice is offered on how to put in place procedures to manage this type of occurrence.

This detailed guidance will prove invaluable to any organization considering an outsourcing agreement and to students studying the topic. Additionally, the book is also a very useful primer for anyone interested in the governance of information systems, how this shapes the roles and responsibilities that are commonly found within IS and IT functions in large organizations and how external factors can drive change in these areas.