Abstract
Knowledge intensive service activities (KISA) are present in all sectors and favour innovation because the exchanges and the interactions of internal or external experts and players disseminate knowledge and thus build the basis for innovation ability. 'Soft' factors and KISA related to the development of organisation and human resources have to be carefully dealt with when developing IS-ICT companies. These issues are explored by presenting two cases taken from the IS banking sector. One describes how a deep change in the performance appraisal of employees helped a supplier of outsourced ICT services develop its outsourcing philosophy and market. The other case concerns the design and implementation of the Competence Centre of the Finance Division of a large Italian software company. The discussion shows how IS-ICT suppliers, sensitive to the 'soft' aspects in their businesses, who choose 'loosely structured' and 'relation intensive' organisational solutions, seem to serve their clients more effectively.
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