Companies should not make a one-time decision about whether or not to outsource their IT operations. Instead, they should focus on maximizing flexibility and control by fostering competition among providers. This will ensure that their IT systems evolve as technologies, markets, and strategies change.
The authors begin by noting that many managers feel incapable of understanding—let alone managing—IT. This is due to the complexity of IT systems and the rapid pace of technological change. As a result, they often outsource their IT operations to third-party providers.
However, the authors argue that outsourcing is not a one-size-fits-all solution. The best approach for a company will depend on its specific circumstances. For example, a company that is facing a short-term crisis may need to outsource its IT operations in order to survive. However, a company that is looking to build a long-term competitive advantage may be better off investing in its own IT capabilities.
The authors conclude by arguing that the best way for companies to maximize flexibility and control is to foster competition among IT providers. This will ensure that companies have access to the best possible IT solutions at the best possible price. It will also force providers to innovate and keep pace with the latest technological developments.
In today’s rapidly changing business environment, flexibility and control are essential for success. By fostering competition among IT providers, companies can ensure that they have the resources they need to succeed in the future.