Abstract
This study offers both an analytical framework of and empirical evidence on the key management strategies and capacities for successful information technology (IT) outsourcing by public agencies. The analytical framework draws insights from studies on IT and public administration, public sector contracting out, and business information systems and IT outsourcing. Using the framework, the research examines IT outsourcing at three federal agencies. Data were collected through interviews and document review, which were analyzed using the variable-oriented comparative case method. In general, this study confIrms the importance of management and capacity building in IT outsourcing. Moreover, the results offer specific guidance on IT outsourcing. First, public agencies need to take a long-term, strategic approach to managing IT outsourcing arrangements. Second, IT outsourcing should be considered a managed relationship rather than a traditional procurement. Last, the use of performance measurement with a service-level agreement is an important ingredient for successful IT outsourcing.
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